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4 November 2024
Two Romanian Nationals Charged with ATM Skimming and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK – Radu-Lucian Grigoras, 45, and Gheorghe Nistor, 42, both nationals of Romania, were indicted on two charges of financial institution fraud and two charges of aggravated identity theft.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Grigoras and Nistor were arraigned in federal court last week on a 4-count indictment alleging that from no later than April 2024 through at least August 2024, the defendants participated in a scheme to defraud financial institutions. The indictment alleges that the defendants installed skimming devices and pinhole cameras within ATMs belonging to financial institutions. Those devices captured and stored the debit card information of unsuspecting individuals who conducted transactions at those ATMs. The pinhole cameras recorded the customers entering their PINs to conduct the ATM transactions. The indictment further alleges that after installation of these devices, the defendants returned within five days to remove these devices and caused the stolen account information to be encoded onto the magnetic strips of other cards, which they used at ATMs to fraudulently withdraw money from customers’ accounts. The indictment alleges that the defendants executed the scheme in multiple states, including New York, Kansas, Missouri, and Pennsylvania. The indictment alleges that as a result of the scheme to defraud, the defendants fraudulently withdrew in excess of $175,543.00 The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Each of the fraud counts in the indictment carries a maximum sentence of 30 years’ imprisonment and a $1 million fine. The maximum sentence for aggravated identity theft is a mandatory consecutive 2 years’ imprisonment. The charges also carry a term of supervised release of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Federal Bureau of Investigation (FBI) is investigating the case, with assistance from the New York State Police, Pennsylvania State Police, Town of Cicero Police Department, City of Auburn Police Department, Leavenworth, Kansas Police Department, St. Charles City, Missouri Police Department, and the St. Peters, Missouri Police Department. Assistant U.S. Attorneys Matthew J. McCrobie and Paul Tuck are prosecuting the case.
Two National MS-13 Gang Leaders and Other MS-13 Members and Associates Indicted for Murders in Queens and Long IslandRead the Press Release
A 49-count superseding indictment was unsealed today in federal court in Brooklyn that includes new charges relating to murders allegedly ordered and committed by national leaders, members and associates of the violent transnational criminal organization La Mara Salvatrucha, also known as MS-13. To date, multiple MS-13 members and associates have been charged in the case for numerous crimes including the murders of Andy Peralta in 2018, Victor Alvarenga in 2018, Abel Mosso in 2019 and Eric Monge in 2020. The superseding indictment filed today includes new charges against the following MS-13 members and associates:
- Edenilson Velasquez Larin, also known as “Agresor,” “Saturno,” “Tiny,” “Erick” and “Paco,” allegedly a national leader of MS-13 and the Fulton Locos Salvatruchas (Fulton) clique, who is charged with the 2016 murder of Kenney Reyes and for ordering the murders of Monge in 2020 and Oswaldo Gutierrez Medrano in 2022.
- Hugo Diaz Amaya, also known as “21” and “Splinter,” allegedly another national leader of MS-13 and the Park View Locos Salvatruchas clique, who is charged with racketeering conspiracy and the murder of Gutierrez Medrano in 2022.
- Numerous other members of the Fulton clique, all of whom were previously charged in the case, have also now been charged with the murders of Reyes, Monge and Gutierrez Medrano.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), William S. Walker, Special Agent in Charge, Homeland Security Investigations (HSI), New York, Thomas G. Donlon, Interim Commissioner, New York City Police Department (NYPD), and Patrick Ryder, Commissioner, Nassau County Police Department (NCPD), announced the arrests and charges.
“My Office and our law enforcement partners have worked tirelessly to hold MS-13 accountable for the unspeakable harm it has done to its victims and our communities. As these charges make clear, our pursuit of those responsible will not be deterred by the passage of time or by the leaders of MS-13’s futile attempts to hide in the shadows,” stated United States Attorney Peace. “This indictment strikes yet another blow at MS-13’s leadership and demonstrates our work to dismantle MS-13 from top to bottom.”
Mr. Peace also thanked the FBI Baltimore Field Office’s Cross Border Task Force, the Nassau County District Attorney’s Office and the Suffolk County District Attorney’s Office for their valuable coordination with the investigation.
“Edenilson Velasquez Larin and Hugo Diaz Amaya, national MS-13 leaders, allegedly assumed the role of executioner by ordering and participating with the other charged defendants in a series of brutal murders to achieve status and revenge. These alleged conspiracies highlight the fearmongering and callousness in which MS-13 leaders and members operate. May today’s charges reflect the FBI’s commitment to continue its close collaboration with our law enforcement partners to rigorously dismantle the MS-13 hierarchy and disrupt all gang violence terrorizing our communities,” stated FBI Assistant Director in Charge Dennehy.
“The defendants’ ruthless violence, in furtherance of the MS-13 gang, has no place in society and our communities,” said Special Agent in Charge William S. Walker. “Everyday, HSI New York and our law enforcement partners are utilizing every tool at our disposal to dismantle transnational gangs that jeopardize the safety of New Yorkers, as demonstrated with today’s announcement. No stone will be left unturned in our pursuit of justice on behalf of the victims slain by MS-13 gang members.”
“These new charges highlight the NYPD’s relentless pursuit of individuals terrorizing our communities,” stated NYPD Interim Commissioner Donlon. “We and our law enforcement partners must continue to find and dismantle the gangs that fuel crime on our streets, and we must hold their members accountable for their senseless acts of violence. I express my gratitude to all of our federal, state, and local partners for their steadfast dedication to our shared public safety goal.”
“We want to thank our partners in federal law enforcement, particularly the United States Attorney’s Office, for this collaborative effort to bring these violent and destructive criminals to justice,” stated Nassau County Police Commissioner Patrick Ryder. “From our patrol officers on the street to the dedicated investigators in our Detective Division, the Nassau County Police Department is committed to fighting gang violence and rooting out those who bring destruction to our communities.”
The U.S. Program
As alleged in court filings, MS-13 is an extraordinarily violent street gang operating through “cliques” or chapters in Queens, Long Island and communities across the United States, as well as El Salvador, Honduras and other countries in the Americas and Europe. The gang primarily makes money through drug trafficking and extortion, and is known for its gruesome murders of perceived gang rivals and gang members and associates who have violated the gang’s rules. MS-13 has been responsible for dozens of murders in the Eastern District of New York alone.
Since approximately 2021, virtually all MS-13 cliques in the United States have been united under a single hierarchy known as the “U.S. Program.” The U.S. Program is led by a group of senior gang leaders, most of whom are incarcerated, known as “La Mesa” or “The Table.” La Mesa, among other roles, allegedly authorizes and directs murders throughout the country, including in New York. Prior to their arrests, Velasquez Larin and Diaz Amaya were allegedly two of the few members of La Mesa outside of prison — Velasquez Larin was living in Colorado and Diaz Amaya was living in Kansas — and were among the top leaders responsible for the gang’s operations on the East Coast.
Murder of Kenny Reyes
The superseding indictment adds charges for the 2016 murder in Uniondale, New York, of 18-year-old Kenny Reyes, who had recently come to the United States from Honduras. As alleged in court filings, Fulton clique member Jose Espinoza Sanchez befriended Reyes and learned that he had been associated with the 18th Street gang, rivals of MS-13. Velasquez Larin and Espinoza Sanchez plotted with other members of MS-13 in Nassau County to murder Reyes to increase their positions in the gang. On May 23, 2016, Velasquez Larin, Espinoza Sanchez and two others lured Reyes to a wooded area to smoke marijuana, where they killed him with machetes and buried his body. For years after the murder, Velasquez Larin bragged about their roles in the killing to other MS-13 members.
Murder of Eric Monge
The superseding indictment charges Velasquez Larin and Espinoza Sanchez for their roles in ordering the murder of Eric Monge, and Jose Guevara Aguilar, Jose Arevalo Iraheta and Erick Zavala Hernandez for their participation in the murder. As alleged, in the early morning hours of September 6, 2020, Guevara Aguilar and fellow Fulton clique member Oscar Hernandez Baires shot and killed Monge while he was seated in the front passenger seat of his parked car near his home in Queens. Monge’s wife had just returned to the car after bringing their young children inside their residence when Hernandez Baires and Guevara Aguilar began shooting. After the shooting, Guevara Aguilar and Hernandez Baires ran back to a car where Arevalo Iraheta and Zavala Hernandez were waiting to help them escape. As they fled to the car, Guevara Aguilar dropped his hat, which was later found to have his DNA on it.
Murder of Oswaldo Gutierrez Medrano
The superseding indictment also adds charges relating to the 2022 murder in Nassau County of 20-year-old Oswaldo Gutierrez Medrano, a member of the Sailors clique of MS-13. As alleged, Velasquez Larin and Diaz Amaya ordered the murder of Gutierrez Medrano, and Diaz Amaya coordinated luring Gutierrez Medrano to meet other MS-13 members under the false pretense that he would be receiving a promotion within MS-13. In Nassau County, on February 13, 2022, Gutierrez Medrano allegedly met with those other members of MS-13, including defendants Arevalo Iraheta, Carlos Alvarado, Erick Galdamez Leon and Jose Mejia Hernandez, who allegedly killed him with machetes and knives, dismembered his body and buried him in a wooded area.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated as part of the ongoing efforts by the OCDETF, a partnership that brings together the combined expertise of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Today’s charges are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2009, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the district and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel, Michael W. Gibaldi, Anna L. Karamigios and Sophia M. Suarez are in charge of the prosecution, with the assistance of Paralegal Specialist Eleanor Jaffe-Pachuilo.
New Defendant:
HUGO DIAZ AMAYA (also known as “21” and “Splinter”)
Age: 36
Kansas City, KansasDefendants Previously Indicted:
RAMIRO GUTIERREZ (also known as “Cara de Malo”)
Age: 31
Flushing, New YorkVICTOR LOPEZ (also known as “Curioso”)
Age: 26
Flushing, New YorkTITO MARTINEZ-ALVARENGA (also known as “Imprudente”)
Age: 24
Flushing, New YorkISMAEL SANTOS-NOVOA (also known as “Profe” and “Travieso”)
Age: 36
Flushing, New YorkEDENILSON VELASQUEZ LARIN (also known as “Agresor,” “Saturno,” “Tiny,” “Erick” and “Paco”)
Age: 35
Thornton, ColoradoCHRISTIAN ALAS LEON (also known as “Pata de Chucho”)
Age: 26
Westbury, New YorkCARLOS ALVARADO (also known as “Brayle” and “Danny”)
Age: 21
Westbury, New YorkJOSE AREVALO IRAHETA (also known as “Splinter,” “Inesperado” and “Daniel”)
Age: 27
Queens, New YorkJOSE ESPINOZA SANCHEZ (also known as “Cable,” “Bleca,” “Clave,” “Fantasma” and “Victor”)
Age: 25
Carrboro, North CarolinaERICK GALDAMEZ LEON (also known as “Truco,” “Burro,” and “Chicle”)
Age: 24
Westbury, New YorkJOSE GUEVARA AGUILAR (also known as “Tranquilo,” “Malhechor,” and “Angel”
Age: 25
Queens, New YorkKEILA HERNANDEZ MAY
Age: 37
Carrboro, North CarolinaYONATHAN HERNANDEZ
Age: 25
Hempstead, New YorkJOSE MEJIA HERNANDEZ (also known as “Mismo” and “Timbre”)
Age: 22
Westbury, New YorkJOSE PEREZ OVANDO (also known as “Domino” and “Incompleto”)
Age: 24
Westbury, New YorkERICK ZAVALA HERNANDEZ (also known as “Berry,” “Berro,” and “Alex”)
Age: 26
Queens, New YorkE.D.N.Y. Docket No. 20-CR-228 (S-3) (LDH)
Two Men Face Federal Charges in Grandparent Scams that Targeted Elderly Victims Across Multiple StatesRead the Press Release
PROVIDENCE, RI – Two men have been arrested and charged for their alleged roles as couriers in grandparent scams that targeted seniors in multiple states including Rhode Island and Massachusetts, announced United States Attorney Zachary A. Cunha.
Roberto Munoz, 29, of Hialeah, FL, and Jason Rhodes, 34, of Flushing, New York, are charged by federal criminal complaint with conspiracy to commit wire fraud and aggravated identity theft. They appeared before a federal Magistrate Judge on Friday and were released on unsecured bond and GPS electronic monitoring.
Grandparent scams often involve an elderly victim receiving a telephone call and being told that a family member, often a grandchild, needs bail because they have been arrested for committing a crime or causing a motor vehicle accident . Scammers identify themselves as a family member, an attorney, or a member of law enforcement, and direct victims to obtain cash and give it to a courier who will either arrive to pick up the money, or meet them at a specified drop-off location.
Couriers frequently operate in a particular geographical area, where they await instructions and victim information from other individuals participating in the scheme. It is alleged that in early March 2024, Munoz and Rhodes, operating as couriers, traveled to various locations in Rhode Island and Massachusetts and collected approximately $230,000 in payments from unsuspecting victims in more than a dozen communities.
Munoz and Rhodes were arrested by Warwick Police on March 8, 2024, as detectives were investigating the third complaint they had received in a single week from area residents, alleging that they had been contacted by, or had fallen victim to, scammers. It is alleged that, after one set of grandparent victims had already turned over $18,000 to a courier to cover what they were told was bail for their grandson, the grandparents were contacted again, were told that their grandchild was now being sued for $100,000, and that a $40,000 payment was immediately required. At this point, recognizing that the demands were part of a scam, the grandparents contacted the Warwick Police Department, which set up surveillance inside and outside the grandparents’ home while waiting for the courier to return. Rhodes was arrested at the house when he allegedly arrived to collect the money; Munoz was arrested while sitting in a car near the home, allegedly waiting the return of Rhodes.
A court-authorized search of the vehicle and a nearby hotel room registered to Rhodes resulted in the seizure of more than $60,000 in cash and other items. A subsequent investigation by Warwick Police and Homeland Security Investigations determined that the defendants had allegedly been provided the names and addresses of grandparent scam victims in Coventry, Newport, Cranston, Hopkinton, West Greenwich, East Greenwich, and Smithfield, RI; in Stanhope, IA; and in Braintree, Hanover, Plymouth, Scituate, Cohasset, Stoughton, and Lakeville, MA. A device allegedly seized from Rhodes at the time of his arrest contained chat messages sent to him by Munoz that appear to contain names and addresses of target victims and their grandchildren in Wisconsin, Illinois, Virginia, Kansas, Maryland, Tennessee, Iowa, North Carolina, and New Jersey.
This investigation remains ongoing, but, based upon local police reports it is believed that numerous families in Rhode Island and Massachusetts been victimized.
A federal criminal is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Ly T. Chin.
The matter was investigated by Homeland Security Investigations, with the assistance of the Newport, Cranston, Hopkinton, West Greenwich, Smithfield, and Coventry, RI Police Departments; Rhode Island State Police; the Braintree, Hanover, Plymouth, Scituate, Stoughton, Lakeville, and Northbridge, MA Police Departments; and the Hamilton County Sheriff’s Department, IA.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available by calling the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, http://www.elderjustice.gov.
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Turkish National Arrested for Allegedly Conspiring to Violate Venezuela-Related SanctionsRead the Press Release
WASHINGTON – Taskin Torlak, 37, of Turkey, was arrested in Miami, Florida, on November 2, 2024, for allegedly conspiring to violate U.S. sanctions as part of a scheme to transport oil from Venezuela for the benefit of Petróleos de Venezuela, S.A. (“PdVSA”), Venezuela’s state-owned oil and natural gas company.
The arrest and charges were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General for National Security Matthew G. Olsen, and Special Agent in Charge Derek W. Gordon, with Homeland Security Investigations (HSI) Washington, D.C.
Torlak was arrested as he attempted to depart the United States to return to Turkey. He is charged by complaint with one count of conspiring to violate the International Emergency Economic Powers Act (“IEEPA”). According to the complaint, Torlak conspired with others to cause U.S. financial institutions to process transactions connected to the transport of Venezuelan oil for the benefit of PdVSA, which the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated as a Specially Designated National (“SDN”) in January 2019.
“This defendant allegedly conspired to illegally sell Venezuelan oil, using deceit and trickery to hide the fact that this oil originated from Venezuela,” said U.S. Attorney Graves. “Venezuela’s state-owned oil company, PdVSA, was sanctioned by the U.S. government to prevent the current regime from further depleting the nation’s resources, while it unlawfully remains in power. We remain dedicated to prosecuting violations of these sanctions until the government of Venezuela takes the necessary steps for these sanctions to be lifted.”
“As alleged, the defendant conspired to evade U.S. sanctions imposed on PdVSA, deploying deception to smuggle black-market oil from Venezuela,” said Assistant Attorney General Matthew G. Olsen. “The Justice Department will continue to hold accountable those involved in criminal efforts to circumvent sanctions imposed on the Maduro regime.”
“These sanctions violations put people at risk at every step - from allegedly tampering with location devices on vessels to supplying to money to areas that will continue to engage in activity that threatens the U.S. ,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations Washington, D.C. “HSI will continue to work tirelessly to protect the American people and the integrity of our economic and trade laws.”
According to the complaint, beginning at least in or around November 2020, Torlak and others devised and implemented a complex scheme to violate and evade U.S. sanctions related to petroleum products from Venezuela and Iran. The scheme included obfuscating the identities of tankers moving the oil by re-naming and re-flagging vessels, covering vessel names with paint or blankets, and turning off the electronics that track vessels’ locations for the safety of ships and their crews. Torlak and his co-conspirators allegedly received tens of millions of dollars from PdVSA in payment for transporting Venezuelan oil and hid the ultimate beneficiaries of the related transactions from U.S. financial institutions, who then unwittingly processed payments in furtherance of the scheme. The complaint further alleges that Torlak and his co-conspirators explicitly discussed the need to hide their conduct from the U.S. Government and its agencies, including OFAC, as well as commercial maritime entities.
This case is being investigated by the Department of Homeland Security Investigation’s Washington D.C. Field Office. It is being prosecuted by Assistant U.S. Attorney Maeghan Mikorski from the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Sean Heiden and Chantelle Dial of the National Security Division’s Counterintelligence and Export Control Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of Florida.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Turkish National Arrested for Allegedly Conspiring to Violate Venezuela-Related SanctionsRead the Press Release
Taskin Torlak, 37, of Turkey, was arrested in Miami, on Nov. 2 for allegedly conspiring to violate U.S. sanctions as part of a scheme to transport oil from Venezuela for the benefit of Petróleos de Venezuela, S.A. (PdVSA), Venezuela’s state-owned oil and natural gas company.
“As alleged, the defendant conspired to evade U.S. sanctions imposed on PdVSA, deploying deception to smuggle black-market oil from Venezuela,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will continue to hold accountable those involved in criminal efforts to circumvent sanctions imposed on the Maduro regime.”
“This defendant allegedly conspired to illegally sell Venezuelan oil, using deceit and trickery to hide the fact that this oil originated from Venezuela,” said U.S. Attorney Matthew Graves for the District of Columbia. “Venezuela’s state-owned oil company, PdVSA, was sanctioned by the U.S. government to prevent the current regime from further depleting the nation’s resources while it unlawfully remains in power. We remain dedicated to prosecuting violations of these sanctions until the government of Venezuela takes the necessary steps for these sanctions to be lifted.”
“These sanctions violations put people at risk at every step - from allegedly tampering with location devices on vessels to supplying to money to areas that will continue to engage in activity that threatens the U.S,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations Washington D.C. “HSI will continue to work tirelessly to protect the American people and the integrity of our economic and trade laws.”
Torlak was arrested as he attempted to depart the United States to return to Turkey. He is charged by complaint with one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA). According to the complaint, Torlak conspired with others to cause U.S. financial institutions to process transactions connected to the transport of Venezuelan oil for the benefit of PdVSA, which the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated as a Specially Designated National (SDN) in January 2019.
According to the complaint, beginning at least in or around November 2020, Torlak and others devised and implemented a complex scheme to violate and evade U.S. sanctions related to petroleum products from Venezuela and Iran. The scheme included obfuscating the identities of tankers moving the oil by re-naming and re-flagging vessels, covering vessel names with paint or blankets, and turning off the electronics that track vessels’ locations for the safety of ships and their crews. Torlak and his co-conspirators allegedly received tens of millions of dollars from PdVSA in payment for transporting Venezuelan oil, and hid the ultimate beneficiaries of the related transactions from U.S. financial institutions, who then unwittingly processed payments in furtherance of the scheme. The complaint further alleges that Torlak and his co-conspirators explicitly discussed the need to hide their conduct from the U.S. Government and its agencies, including OFAC, as well as commercial maritime entities.
Homeland Security Investigations Washington D.C. is investigating the case.
Assistant U.S. Attorney Maeghan Mikorski for the District of Columbia and Trial Attorneys Sean Heiden and Chantelle Dial of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of Florida.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Correctional Officers Admit to Violating Civil RightsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Three former correctional officers from United States Penitentiary Hazleton have admitted to their roles in the violation of civil rights involving the assault of a prisoner, announced United States Attorney William Ihlenfeld.
Robert David Sims, 42, of Bruceton Mills, West Virginia, pled guilty to assault resulting in serious bodily injury. According to court documents and statements made in court, during a strip search of an inmate, Sims repeatedly struck him in the face, head, arms, and torso, causing significant injuries.
Joshua David Sines, 39, of Friendsville, Maryland, pled guilty to conspiring to commit an alteration and falsification of records. Sines falsified reports on the incident to protect himself and Sims from disciplinary action or prosecution.
Josiah Dandue Redd, 36, of Morgantown, West Virginia, pled guilty to making a false statement to a federal agent and accessory after the fact to an assault by striking, beating, or wounding. According to statements made in court, Redd also falsified reports and statements to agents about the incident to protect Sims and Sines.
“The defendants abused their powers as correctional officers and now they will be held to account,” said U.S. Attorney Ihlenfeld. “The U.S. Attorney’s Office will continue to prosecute officers who misuse their authority and violate the rights of people in their custody.”
Sims, Sines, and Redd have agreed to resign their positions with the Bureau of Prisons and to not seek or obtain employment in the future with the U.S. Department of Justice, Bureau of Prisons, or any private prison or community corrections center that contracts to house federal prisoners.
“We expect Correctional Officers to conduct themselves with integrity and to foster safe and humane conditions of confinement for inmates. Instead, Sims violently assaulted an inmate and Sines and Redd conspired to cover it up in an attempt to avoid punishment,” said Timothy C. Edmiston, Special Agent in Charge of the U.S. Department of Justice Office of the Inspector General Mid-Atlantic Region. “These acts will not be tolerated. Perpetrators of assault and those who make false statements to cover it up will be brought to justice.”
Sims faces up to 10 years in federal prison. Sines is facing up to five years. Redd faces up to five years for the false statement charge and up to six months for the accessory charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Attorney’s Office is seeking information from persons who may have witnessed or were victims of physical assault while incarcerated at FCC Hazelton. Any witness or victim to any such crimes or crimes or attempts to conceal such crimes are asked to directly contact federal prosecutors in the Northern District of West Virginia by calling 1-855-WVA-FEDS or by sending an email to [email protected].
The U.S. Department of Justice Office of Inspector General investigated the case.
Assistant U.S. Attorney Brandon Flower is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Michael John Aloi presided.
Thibodaux Man Guilty of Social Security TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that NATHANIEL HOPKINS, JR. (“HOPKINS”), age 48, of Thibodaux, Louisiana, pleaded guilty before United States District Judge Jay Zainey to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court documents, HOPKINS’s wife was authorized to receive Social Security Administration (“SSA”) Title II – Retirement Survivor Insurance Benefits from 2003 until her death in April, 2014. From April, 2014 to January, 2024, HOPKINS illegally received benefits designated for his wife totaling approximately $144,176.43, after failing to notify SSA of his wife’s death.
Sentencing will occur on January 29, 2025. At sentencing, HOPKINS faces up to ten (10) years imprisonment, up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit.
Texas Felon Sentenced for Possessing FirearmsRead the Press Release
A man who was stopped for speeding and found in possession of several firearms was sentenced November 1, 2024, to more than three years in federal prison.
Douglas Lynn Greer, age 41, from Fort Worth, Texas, received the prison term after a March 26, 2024, guilty plea to one count of being a felon in possession of a firearm. At the guilty plea, Greer admitted he possessed four firearms in his car when he was stopped for speeding in Clayton, County, Iowa. Greer had previously been convicted of the felony offenses of making terroristic threats and offering a forged check.
Greer was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Greer was sentenced to 40 months’ imprisonment, and he must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Greer is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and investigated by Clayton County Sheriff’s Office, the Clayton County Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-01002.
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Texas Drug Courier Sentenced for Cocaine Distribution Conspiracy and PossessionRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ISAAC ORTIZ (“ORTIZ”), age 23, a resident of El Paso, Texas, was sentenced on October 29, 2024 to 70 months imprisonment after previously pleading guilty to conspiring to distribute five kilograms or more of cocaine and, possession, with the intent to distribute, five kilograms or more of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(A), and 846.
According to court records, ORTIZ, and his 18-year-old sister, were travelling through Louisiana on I-12 when they were stopped by Louisiana State Police for a traffic violation. During the stop, the vehicle was searched, and approximately ten kilograms of cocaine concealed in the vehicle, were discovered.
U.S. District Judge Greg Guidry sentenced ORTIZ to 70 months imprisonment, a four-year term of supervised release and a $100.00 mandatory special assessment fee.
The case was investigated by the United States Department of Homeland Security and the Louisiana State Police and prosecuted by Assistant United States Attorney Maurice Landrieu of the Narcotics Unit.
Ten People Indicted for Federal Firearm and Violent Crimes in Western TennesseeRead the Press Release
Memphis, TN – A federal grand jury returned indictments charging ten people in West Tennessee with federal gun and violent crime offenses, including Lavaughn Gilmore, 26, who is facing charges for illegally possessing a machine-gun conversion device (also known as a “switch”). Acting United States Attorney Reagan Fondren announced the indictments today.
“Violent crime endangers every resident and every family in Western Tennessee,” said Acting United States Attorney Fondren. “These indictments reflect our commitment to tackling violent crime and sending a strong message: if you break federal gun laws, you will face significant penalties. The safety of our citizens remains our top priority and we will continue to pursue justice for our communities.”
The following defendants were charged with other firearm or violent crime offenses:
- Colton Sisco, 30, was indicted on multiple charges involving making and possessing a firearm – specifically a pipe bomb – in violation of the National Firearms Act;
- Anthony Wells, 33, was indicted with being a felon in possession of a firearm;
- Derrico Childs, 21, Exavier Spivey, 25, and James Howard, 22, were charged in a superseding indictment for four counts of armed carjacking and four counts of use of a firearm during a violent crime;
- Derrion Turner, 19, was indicted for two armed car jackings and an attempted armed carjacking in Memphis committed over a 10-day span in August and September 2023;
- Justin Bobo, 33, was indicted for possession of a firearm after having at least three prior convictions for serious drug offenses or violent felonies;
- Keihdra Bledsoe, 28, was indicted for being a felon in possession of a firearm; and
- Mike Alex Burks Jr., 46, was indicted for being a felon in possession of a firearm.
These cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation’s Safe Streets Task Force; the Project Safe Neighborhoods Gun Task Force; the Memphis Police Department; and the Shelby County Sheriff’s Office. Anyone with information about switches or other federal gun crimes can call 1-800-ATF-GUNS (1-800-283-4867).
The charges and allegations contained in the indictments are merely accusations of criminal conduct, not evidence. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law. If convicted, each defendant’s sentence will be determined by the Court after review of the factors unique to the case, including the defendant’s prior criminal records (if any), the defendant’s role in the offense, and the characteristics of the violation.
These indictments are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, using data-driven methods to set focused and strategic enforcement priorities, and measuring the results.
Acting United States Attorney Reagan Fondren thanked the Assistant United States Attorneys prosecuting these cases, as well as the law enforcement partners who investigated the cases.
Telehealth Company Cerebral Agrees to Pay over $3.6 Million in Connection with Business Practices that Encouraged the Unauthorized Distribution of Controlled SubstancesRead the Press Release
Breon Peace, the United States Attorney for the Eastern District of New York, and Anne Millgram, Administrator of the U.S. Drug Enforcement Administration (DEA), announced today that the online mental healthcare company Cerebral, Inc. (Cerebral) has entered into a non-prosecution agreement (NPA) with the U.S. Attorney’s Office for the Eastern District of New York (the Office), and has agreed to pay more than $3.6 million for engaging in practices that encouraged the unauthorized distribution of controlled substances from 2019 to 2022. An additional fine against Cerebral has been deferred in light of the company’s current financial condition.
Under the terms of the NPA, Cerebral agreed to forfeit $3,652,000 to the United States. The NPA requires Cerebral to continue to cooperate with and provide information to the United States for at least the 30-month term of the agreement. The NPA also requires Cerebral to pay a fine of $2,922,000, which the Office has determined that Cerebral does not currently have the ability to pay; as a result, it will be deferred for the term of the NPA, and waived at the expiration of the NPA if Cerebral is in compliance with the NPA and unless the Office determines that Cerebral’s financial performance has changed such that payment of all or a portion of the fine would be warranted. In the event that Cerebral violates the NPA, the Office may prosecute Cerebral for any of the conduct that gave rise to the NPA and any newly discovered criminal activity.
“People seeking care for their mental health conditions should receive high-quality care that is not motivated or driven by greed,” stated United States Attorney Peace. “Cerebral sought to increase its bottom line by increasing the prescription of drugs, including controlled substances that can be highly addictive and dangerous. Since my Office’s investigation came to Cerebral’s attention, the company has cooperated fully and taken significant steps to remediate the institutional failures that allowed this situation to occur in the first place. This resolution ensures that Cerebral will be financially accountable for its unacceptable conduct and serves as a reminder to the healthcare industry that my Office is committed to ensuring patient safety and protecting the public from business practices like those of Cerebral.”
“Today’s settlement holds Cerebral responsible for their failure to protect patients from the harms caused by the unnecessary or overprescribing of potentially-addictive ADHD medications,” said DEA Administrator Anne Milgram. “Cerebral’s exploitation of telemedicine flexibilities deceived patients who were legitimately seeking medical care, putting them at risk in exchange for profit. DEA remains committed to telemedicine accessibility that supports the health of all patients while also ensuring that telemedicine companies and practitioners prioritize patient health and safety above all else.”
Cerebral’s Operations
Cerebral is an online mental health company that operates primarily as a direct-to-consumer business. Since October 2019, Cerebral has promoted or sold subscription services offering online health care treatment, including mental health treatment and medication management services, through its online platforms, to hundreds of thousands of patients struggling with depression, anxiety and other mental health issues. Cerebral generated revenue by offering tiered monthly subscription plans to its patients. Certain of Cerebral’s subscription plans offered patients the ability to obtain medication from Cerebral’s treatment providers.
Attention-Deficit/Hyperactivity Disorder (ADHD) was one of the mental health conditions Cerebral offered treatment for. Cerebral first launched its ADHD line of service in or around February 2021 and began offering ADHD treatment services to the public across the United States, rolling services out on a state-by-state basis. Cerebral’s ADHD services were perceived to be a profitable line of business with the potential to increase patient retention at the company.
Beginning in October 2020, Cerebral expanded its medication offerings to include controlled substances. In addition, beginning in February 2021, Cerebral permitted its treatment providers to prescribe stimulant medication, such as Adderall, to its patients. Prescription stimulants, such as Adderall, are Schedule II drugs under the Controlled Substances Act.
Cerebral’s Prescription Practices
Between February 2021 and October 2022, Cerebral instituted internal measures to increase the prescriptions of medications with the goal of boosting patient retention and, by extension, Cerebral’s revenue.
Cerebral monitored the rates at which its providers prescribed medications, including controlled substances, primarily through two metrics which measured: (1) the number of drug prescriptions issued to patients who enrolled in a medication management subscription plan after their first 30-minute telehealth visit (the Initial Visit Rx Rate); and (2) the number of stimulant prescriptions prescribed to patients diagnosed with ADHD who had no comorbidities (the ADHD Stimulant Rx Metric). Cerebral did not consult with any members of its clinical advisory board—which included multiple experts in the fields of psychology and psychiatry—prior to implementing targeted campaigns to improve both metrics.
Between May 2021 and May 2022, Cerebral sought to increase the Initial Visit Rx Rate to 95%. Cerebral recognized inherent problems with the Initial Visit Rx Rate, including the fact that the metric did not take into account whether patients were diagnosed with conditions where drug prescriptions were clinically appropriate, and that the 95% target goal was not based on any established data or benchmark in medical or scientific literature. Cerebral also recognized that there were a variety of legitimate reasons why its treatment providers would not prescribe drugs to patients immediately after the patient’s first visit, and that the Initial Visit Rx Rate could perversely incentivize its treatment providers into prescribing medication that was not necessary. Nonetheless, the company reviewed treatment providers’ performance using the Initial Visit Rx Rate and engaged in coordinated efforts to increase the Initial Visit Rx Rate, including by implementing a bonus structure that awarded bonuses to supervisory individuals if they increased the Initial Visit Rx metric among their supervisees; and conducting regular reviews of providers’ individual Initial Visit Rx Rate. Despite the Company’s efforts to increase its performance on the Initial Visit Rx metric, it did not improve after December 2021. Cerebral ceased using the Initial Visit metric in or about May 2022, after Cerebral’s former Chief Executive Officer was terminated.
Beginning in at least October 2021, Cerebral also took initiatives to measure the percentage of controlled substances prescriptions issued to patients who had been diagnosed with ADHD without comorbidities. Cerebral subsequently developed an internal plan to increase the ADHD Stimulant Rx Metric to 100% or “near 100%” and regularly audited its providers’ ADHD prescription practices. Cerebral also considered disciplinary measures, such as issuing “flags” and “strikes,” for individuals who the company considered to be underperformers for this metric. Cerebral instituted these measures despite the fact that certain of its treatment providers had expressed concerns to Cerebral’s management about drug diversion risks with ADHD patients. Cerebral ceased all use of the ADHD Stimulant Rx Metric by October 2022.
In addition to the above tactics, Cerebral also provided financial payments that incentivized its providers to issue stimulant medication for ADHD patients. Specifically, prior to May 2022, Cerebral paid its providers an additional $10 to conduct required pre-prescription checks of Prescription Drug Monitoring Programs (PDMP)/Prescription Monitoring Program (PMP) databases. Cerebral did not compensate its providers for conducting PDMP/PMP checks for patients with any other medical diagnoses or patient needs.
Cerebral’s Diversion Risks
According to Cerebral’s admissions, Cerebral also did not maintain effective controls against drug diversion, even when risks of drug diversion were elevated to or acknowledged by its management. For example, Cerebral had thousands of duplicate patient accounts (i.e., multiple accounts that belonged to the same individual) that were not fully addressed internally until at least early 2022. As a result of the failure to timely identify and remove duplicate accounts, at least one patient was able to obtain stimulant prescriptions from multiple providers at Cerebral, even after having been previously flagged as having misused stimulants. As another example, prior to 2022, Cerebral also permitted drug-seeking patients who were not prescribed controlled substances in the first instance to seek reassignment to different providers.
The Non-Prosecution Agreement
Cerebral has agreed to forfeit $3,652,000 to the United States, which represent the amount of proceeds that could be reasonably attributed to the monthly increase in ADHD revenue generated by patients who were diagnosed with ADHD and subsequently prescribed stimulant prescriptions. Cerebral has also agreed to pay a fine of $2,922,000, which the Office has determined that Cerebral does not currently have the ability to pay; as detailed above, it will be deferred for the term of the NPA.
The Office reached this resolution with Cerebral after carefully weighing all of the factors relevant to the appropriate corporate resolution. The NPA recognizes that, although Cerebral’s serious misconduct was reported to the Office before Cerebral self-disclosed it, Cerebral voluntarily took a number of substantial remedial measures beginning in May 2022 to mitigate and correct the effects of the practices described above, including terminating its former Chief Executive Officer, stopping all use of the prescription metrics described above, and improving its compliance measures. In October 2022, Cerebral voluntarily stopped prescribing controlled substances to all of its patients, and has agreed not to prescribe controlled substances in the future. Cerebral also has no prior criminal history in the United States. Furthermore, Cerebral has cooperated extensively with the Office in its investigation, including through detailed disclosures, and has agreed to continue to cooperate fully with the Office.
The agreement announced today is the result of an investigation conducted by the Drug Enforcement Administration, New York Division, Buffalo Diversion Group, Tactical Diversion Squad. The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section and Business and Securities Fraud Section. Assistant United States Attorneys Genny Ngai, Gillian Kassner and Miranda Gonzalez are in charge of the prosecution, with the assistance of the Office’s former Paralegal Specialists Sophia Cronin, Riley Martinez and Jordi Martinez.
The Defendant:
CEREBRAL, INC.
cerebral_agreement.pdf
Claymont, DelawareSinaloa Cartel Associates Sentenced to Federal Prison for Trafficking CocaineRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Anthony Carroll (50, Tampa) to 12 years and 7 months in federal prison for conspiring to possess with intent to distribute 5 kilograms or more of cocaine and possession with intent to distribute 5 kilograms or more of cocaine. The court also ordered Carroll to forfeit $10,340, a facilitating property of the offenses. Carroll was found guilty by a federal jury on April 9, 2024.
According to testimony and evidence presented at trial, Carroll and his co-defendant, Pablo Villalobos (62, Sinaloa, Mexico) agreed with an individual located in Mexico and associated with the Sinaloa Cartel to purchase 30 kilograms of cocaine in Tampa. An undercover agent in contact with the Mexican cartel member was solicited by that individual to transport the 30 kilograms of cocaine from El Paso, Texas to Tampa. The agent met with an unnamed individual in El Paso to take possession of the cocaine and the courier was later surveilled leaving the United States and entering Mexico at Chihuahua, Mexico.
Once in Tampa, the undercover agent contacted the Mexican cartel member who told the agent that two people would be arriving to the meeting location in a white vehicle. Carroll and Villalobos arrived shortly afterwards in Carroll’s white car. The pair met with two undercover agents, paid them the transportation fee, and took possession of the 30 kilograms of cocaine. A short while later, troopers from the Florida Highway Patrol stopped the vehicle, a narcotics dog was deployed, and troopers discovered the cocaine in the trunk of the vehicle. The pair were then arrested.
Villalobos pleaded guilty on April 3, 2024. On July 10, 2024, he was sentenced to four years and nine months’ imprisonment.
This case was investigated by the Drug Enforcement Administration’s Tampa District Office and El Paso Field Division and the Florida Highway Patrol. It was being prosecuted by Assistant United States Attorney Shauna S. Hale.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Sex Offender Sentenced to Prison for Violating the Federal Sex Offender Registration and Notification ActRead the Press Release
CHARLESTON, W.Va. – Gary Allen Swift Jr., 62, was sentenced today to one year and nine months in prison, to be followed by five years of supervised release, for failure to provide information related to interstate travel as required by the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, from on or about July 1, 2023 through on or about February 6, 2024, Swift failed to register or update his registration as required by SORNA after he relocated to West Virginia from Iowa.
Swift traveled from Iowa to Huntington, West Virginia, following his conviction for failing to register as a sex offender in Scott County, Iowa, District Court on January 4, 2023. On April 7, 2023, Swift was convicted in Cabell County Magistrate Court for failing to register as a sex offender in West Virginia. Swift then moved from Huntington to Charleston, where he continued his pattern of failing to register until February 2024, resulting in his prosecution by the United States Attorney's Office for the Southern District of West Virginia.
Swift is required to register as a sex offender and comply with SORNA because of his convictions for first-degree sexual abuse in Nicholas County, West Virginia, Circuit Court on March 18, 1986, and criminal sexual assault in Rock Island, Illinois, Circuit Court on November 20, 2006.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service (USMS).
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jonathan T. Storage prosecuted the case.
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006 and provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA seeks to strengthen the nationwide network of sex offender registration and notification programs, in part by requiring registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-27.
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Sequoyah County Resident Sentenced for Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that James Timothy Mathis, age 43, of Muldrow, Oklahoma, was sentenced to 24 months in prison for illegal possession of a firearm.
The charge arose from an investigation by the Sequoyah County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On August 8, 2023, Mathis pleaded guilty to one count of Felon in Possession of a Firearm. According to investigators, on March 4, 2023, a Sequoyah County deputy performing a routine traffic stop discovered Mathis in possession of a loaded .38 SPL caliber revolver. At the time of the stop, Mathis had been convicted of a punishable by imprisonment for a term exceeding one year and was prohibited from possessing firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Honorable John C. Coughenour, Senior U.S. District Judge in the United States District Court for the Western District of Washington, sitting by assignment, presided over the sentencing hearing in Muskogee, Oklahoma. Mathis will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney T. Cameron McEwen represented the United States at the sentencing hearing.
Schenectady Man Charged with Firearm and Drug OffensesRead the Press Release
ALBANY, NEW YORK – Willie Mills, age 31, of Schenectady, New York, was ordered detained last week following his indictment and arrest for possession of a firearm as a prohibited person and distribution of cocaine and fentanyl.
United States Attorney Carla B. Freedman; Bryan Miller, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Field Division, made the announcement.
According to the indictment, on April 27, 2023, Mills unlawfully possessed a firearm as a previously convicted felon. The indictment also charges that Mills distributed cocaine and fentanyl on four separate dates in 2023 and 2024. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Mills carry a prison term of at least 5 years and up to 40 years, a fine of up to $5 million, and a supervised release term of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Mills was arraigned in Albany on October 29 before United States Magistrate Judge Christian F. Hummel. Following a detention hearing on October 31, Mills was ordered detained pending trial.
DEA is investigating the case with assistance from the Schenectady Police Department and ATF. Assistant U.S. Attorney Matthew Paulbeck is prosecuting the case.
Sarasota Man Sentenced to Nine Years for Possessing A Firearm and Ammunition as A Convicted FelonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced John Lewis (34, Sarasota) to nine years in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Lewis to forfeit a HS Produkt (a/k/a “IM Metal”) 9mm model XDS pistol and assorted ammunition, which are traceable to proceeds of the offense. Lewis entered a guilty plea on August 6, 2024.
According to court documents, at approximately 2 a.m. on November 30, 2023, a deputy with the Sarasota County Sheriff’s Office observed an SUV being driven by Lewis run a red light while traveling more than 100 mph. Despite running over stop sticks deployed by law enforcement, Lewis continued driving recklessly at a high rate of speed. Lewis then lost control of the SUV while going over the south bridge near the Isle of Venice and crashed, coming to a stop in the middle of the bridge. Lewis then fled from the SUV and jumped off the bridge, losing a sandal in the process. Lewis landed on the Venetian Waterway Trail instead of in the Venetian Waterway and continued to flee from law enforcement despite sustaining injuries from the impact. A matching sandal and a black semi-automatic firearm containing four rounds of live ammunition were located on the Venetian Waterway Trail and Lewis was located nearby in a shed. Forensic testing further corroborated Lewis’s possession of the firearm.
Lewis has previously been convicted of multiple felonies, including aggravated assault with a deadly weapon, possession of a weapon or ammunition by a juvenile delinquent, aggravated battery with a deadly weapon, false imprisonment, grand theft of a firearm, possession of cocaine, interference with child custody, and fleeing or attempting to elude. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sarasota County Sheriff’s Office, the Venice Police Department, and the North Port Police Department. It was prosecuted by Assistant United States Attorney Brooke M. Padgett.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
San Carlos Fraudster Who Cheated Investors Out of More Than $1 Million Sentenced to over Three Years in Federal PrisonRead the Press Release
SAN FRANCISCO – David Scott Cacchione was sentenced today to 40 months in federal prison for conspiracy to commit wire fraud and wire fraud in connection with an investment fraud scheme and a false federal disaster loan application, and tax evasion. The sentence was handed down by the Honorable James Donato, U.S. District Judge.
Cacchione, 59, of San Carlos, was initially charged by complaint on Jan. 16, 2024, and by superseding information on Aug. 7, 2024. On Aug. 14, 2024, he pleaded guilty to all four counts in the superseding information — one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of tax evasion in connection with multiple schemes. According to his plea agreement, Cacchione admitted that he and an alleged co-conspirator defrauded multiple investors by convincing them that their money would be used to purchase accounts receivable that did not exist. Instead, Cacchione used the investor funds to pay personal expenses and to reimburse other victims. Cacchione admitted that victim investors were defrauded out of more than $1.13 million in this scheme. As detailed in court documents, in addition to the investment fraud scheme, Cacchione submitted an Economic Injury Disaster Loan application in September 2020 for a company that he falsely claimed had $1 million in revenue and three employees in the 12-month period prior to Jan. 31, 2020. Based on these false statements, Cacchione obtained a $149,900 loan that he used to pay personal expenses.
“The defendant made multiple misrepresentations in order to enrich himself. He did so by convincing multiple individuals to invest in accounts receivable that did not exist and by diverting disaster relief funds intended to help small businesses to a business that was a sham,” said United States Attorney Ismail J. Ramsey. “My office will vigorously investigate and prosecute those who seek to defraud individuals and federal programs.”
“David Cacchione treated other people’s money as his own,” said Federal Bureau of Investigation (FBI) San Francisco Special Agent in Charge Robert Tripp. “He broke promise after promise and paid his own personal expenses instead of investing his victims’ money. Today, however, he learned a lesson in accountability. The FBI is committed to safeguarding the public from fraud schemes and will continue to work alongside our partners to bring perpetrators like Cacchione to justice.”
“White collar crime is not victimless, and today’s sentencing reinforces it does not go unpunished. Mr. Cacchione’s multiple schemes victimized individual investors and preyed upon federal programs designed to help small businesses recover from dire natural disaster impacts,” said IRS Criminal Investigation (IRS-CI) Oakland Field Office Acting Special Agent in Charge Michael Mosley. “IRS-CI stands up for individuals victimized by financial fraudsters and defends the sanctity of benevolent government programs by putting those who willfully abuse them in jail.”
In addition to the 40-month prison term, Judge Donato also ordered defendant to pay more than $1.4 million in restitution, sentenced the defendant to a three-year period of supervised release, and ordered the defendant to forfeit his $450,000 equity stake in a technology company. Defendant has been in custody since Apr. 24, 2024, and will begin serving his sentence immediately.
The announcement was made by United States Attorney Ismail J. Ramsey, FBI Special Agent in Charge Robert Tripp, and IRS-CI Oakland Field Office Acting Special Agent in Charge Michael Mosley.
Assistant United States Attorney Garth Hire is prosecuting the case. The prosecution is the result of an investigation by the FBI and IRS-CI.
Romanian Nationals Indicted for Illegal Re-Entry of Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – COSTEL ALIMAN (“ALIMAN”) and SABINA MUNTEANU (“MUNTEANU”), citizens of Romania, were indicted on November 1, 2024, for illegal re-entry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, ALIMAN reentered the United States illegally after being previously deported on January 9, 2019, and MUNTEANU reentered the United States illegally after being previously deported on October 4, 2017.
If convicted, ALIMAN and MUNTEANU face up to 2 years imprisonment, up to 1 year of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of United States Homeland Security Investigations, Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Romance Scammer Who Took U.S. Citizens Hostage in the Dominican Republic Sentenced to 25 Years in PrisonRead the Press Release
WASHINGTON - Deivy Jose Rodriguez Delgado, 30, a Venezuelan national, was sentenced today in U.S. District Court for the District of Columbia to 25 years in federal prison for the 2022 armed hostage takings of three U.S. citizens in the Dominican Republic, announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge Jeffrey B. Veltri of the Miami Field Office.
On December 11, 2023, after a nearly two week trial, a jury convicted Delgado of one count of conspiracy to commit hostage taking and three counts of hostage taking. In addition to the prison sentence, U.S. District Court Chief Judge James E. Boasberg ordered Delgado to serve five years of supervised release. Following his release from prison, Delgado will be subject to deportation proceedings.
According to the government’s evidence, Delgado, also known as “Sebastian,” kidnapped three men in separate instances between July 5 and July 30, 2022. In each of the three hostage-takings, Delgado lured his victim online with the promise of a friendly “date” and picked the victim up in his car. After driving a short distance, Delgado suddenly stopped to let an accomplice into the backseat, at which point Delgado and his accomplice held the victim at knifepoint, physically restrained the victim, and demanded ransom for his release. Delgado ordered that the ransoms be paid to online banking accounts, including the same CashApp account.
Each of the three victims was forced at knifepoint to call his friends and family and ask for money to secure his release. The victims were held in captivity by Delgado and his accomplice(s) for up to an hour and were only released after Delgado believed a ransom payment had been made by the victims’ friends and family. In all three hostage takings, the victims were also robbed of their personal belongings before being released on the streets of the Dominican Republic.
Following multiple victim reports, Dominican authorities began an investigation in August 2022. Local law enforcement in the Dominican Republic traced a vehicle used in one of the hostage takings to Delgado and arrested him on Sept. 14, 2022. During a search of the vehicle, Dominican authorities found two serrated knifes like those used in the hostage takings.
This case was investigated by the FBI’s Miami Field Office with valuable assistance provided by the Justice Department’s Office of International Affairs and the Dominican Republic’s Division Especial de Investigacion de Crimen Organizado Internacional (DECROI). The case was prosecuted by Assistant U.S. Attorneys John Korba and Jolie Zimmerman of the U.S. Attorney’s Office for the District of Columbia with assistance from paralegal Michael Watts.
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Deivy Jose Rodriguez Delgado, 30, a Venezuelan national, used this image of himself to meet his victims on a social media dating application.
During a search of the vehicle linked to Delgado, Dominican authorities found two serrated knifes like those used in the hostage takings.
An image Delgado used on his social media app to lure victims.
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22cr0304
Rocky Hill Pharmacy and Its Owners Indicted for Conspiring to Submit False Pharmacy Claims, Making False Statements, and Aggravated Identity TheftRead the Press Release
KNOXVILLE, Tenn. - A federal grand jury in Knoxville returned an eight (8) count indictment on October 16, 2024, against Rocky Hill Pharmacy, LLC, and its co-owners, Anne Warren (“Warren”), 44, and Tiffany Haney (“Haney”), 41, both of Knoxville, Tennessee, for Conspiracy to Commit Healthcare Fraud, False Statements in Connection with Health Care Matters, and Aggravated Identity Theft. Warren and Haney appeared in court on November 1, 2024, before U.S. Magistrate Judge Jill E. McCook for an initial appearance. They were released pending trial, on a date to be set, in United States District Court, in Knoxville, Tennessee.
The indictment alleges that Warren and Haney altered or forged prescriptions in support of claims for reimbursement to various drug plans. The indictment also alleges that Warren and Haney made false statements and used the names and National Provider Identification (NPI) numbers of another person without lawful authority.
If convicted of Conspiracy to Commit Health Care Fraud (Count 1), Warren and Haney face a term of ten (10) years in prison, a fine of up to $250,000, and supervised release of up to three (3) years. If convicted of False Statements Relating to Health Care Matters (Counts 2 – 4), Warren and Haney face a term of five (5) years in prison, a fine of up to $250,000, and supervised release of up to one (1) year, and if convicted of Aggravated Identity Theft (Counts 5 – 8), Warren and Haney face a term of two (2) years in prison, a fine of up to $250,000, and supervised release of up to one year.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
This indictment is the result of an investigation by the Federal Bureau of Investigation, Health and Human Services – Office of Inspector General, the Department of Labor – Office of Inspector General, and the Tennessee Bureau of Investigation – Medicaid Fraud Control Division.
Assistant U.S. Attorney Jeremy S. Dykes will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Riverview Woman Pleads Guilty to Sending Threatening Messages to Palestinian AmericansRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that Andrea Rubiano (49, Riverview) pleaded guilty to transmitting a threat in interstate commerce and making false statements to a federal agent. Rubiano faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in October 2023, Rubiano sent threatening text messages to 12 Palestinian Americans residing in the Middle District of Florida. By way of example, one of the victims received the following messages from Rubiano:
Palestinians in Tampa must die!!
You Family [the victim’s surname] are fucking shit
They are trash they should die first
The [victim’s surname] family is shit in Tampa
In the mosque we are going to behead them and drag them alive
like rats fucking Palestinians with their wives and children
We took you out of your land like rats, now we are going to get
you out of here you fucking bastards, [the victim’s surname]
brothers.
Rubiano also sent the victim the Israeli flag, two images of what appears to be a public demonstration, 12 Palestinian flag emojis, 23 skull-and-crossbones flag emojis, 10 Star of David emojis, seven lit cannonball emojis, and five rat emojis.
A few days after Rubiano sent the threatening messages, a Special Agent with the Federal Bureau of Investigation interviewed Rubiano. At the time, Rubiano denied sending the threatening messages and affirmatively stated that she would never threaten [the Victim’s] family. Several months later, Rubiano admitted that she had willfully and knowingly lied to the Special Agent during the first interview. More specifically, Rubiano admitted that, on October 13 and 14, 2023, she had sent threatening messages to several Palestinian Americans and that she had not been truthful when she told the Special Agent otherwise.
As part of the plea agreement, Rubiano also agreed to a special finding that she intentionally selected Palestinian Americans and/or Arabic individuals as the objects of her threats based on their actual or perceived race, religion, national origin, or ethnicity.
This case was investigated by the Federal Bureau of Investigations’ Joint Terrorism Task Force. It is being prosecuted by Assistant United States Attorney Lindsey Schmidt.
Repeat Sex Offender Found Guilty of Possession of Child Pornography by a Federal JuryRead the Press Release
SALT LAKE CITY, Utah – A federal jury in Salt Lake City returned a guilty verdict against a repeat sex offender for the possession of child sexual abuse material.
Daniel David Egli, 50, of South Jordan, Utah, was indicted for possession of child pornography by a federal grand jury in June 2022.
According to court documents and evidence presented at trial, Egli’s was first convicted of possession of child sexual abuse material in 2004 and then again in 2010. In addition, he has had several violations of the conditions of his supervised release. Most recently, in the spring of 2021, while Egli was serving another term of federal supervision, he again violated his conditions of release. During a routine check by his probation officer, law enforcement found Egli possessed an unauthorized laptop and smart phone. These unauthorized devices were seized, along with other unauthorized electronic devices.
Subsequently, in May 2021 a warrant was issued for Egli’s arrest, and he was taken into custody. A search of his residence at that time revealed additional unauthorized electronic devices. Further investigation by the Federal Bureau of Investigation and the Intermountain West Regional Computer Forensic Lab of the electronic evidence demonstrated that Egli had accessed, viewed, and possessed nearly 500 images of child sexual abuse material, which led to the June 2022 federal charge.
Egli’s sentencing is scheduled for February 27, 2025, at 1:00 p.m. at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
The United States Attorney Trina A. Higgins of the District of Utah made the announcement.
The case is being investigated by the FBI Salt Lake City Field Office.
The United States Attorney’s Office for the District of Utah is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Registered Sex Offender from West Gardiner Sentenced to 50 Years for Child Sexual Abuse Material OffensesRead the Press Release
BANGOR, Maine: A West Gardiner man was sentenced today in U.S. District Court in Bangor for transporting, receiving, distributing and possessing child sexual abuse material, as well as failing to register as a sex offender.
Chief U.S. District Judge Lance E. Walker sentenced Jon A. Hall (aka L.J. (Little Jon) Hall), 30, to a total of 600 months in prison to be followed by a lifetime of supervised release. He was also ordered to pay $8,000 in restitution. Hall pleaded guilty on April 26, 2024.
According to court records, on August 29, 2022, Maine State Police investigators executed a search warrant in West Gardiner on Hall’s person. In the search, they seized an iPhone belonging to Hall, and child sexual abuse material was recovered from that phone. Some of the images and video files depicted Hall sexually abusing a young child while earlier living in another state. The phone also included messages with a person in Maine while Hall was out of state. In many of those messages, Hall inquired about obtaining nude images of underage children and sent the user child sexual abuse material. There was also evidence of Hall receiving payments for the images via Cash App. The images were of victims under the age of 12 and included images Hall had solicited and received from boys he knew or met online.
In April 2015, Hall pleaded guilty to and was convicted of two counts of possessing sexually explicit material depicting a child under 12 and was notified of the requirement as a Tier III lifetime registrant of the sex offender registry to maintain current registration information.
“Mr. Hall has a lengthy and troubling history that makes it clear that children are in danger as long as he is free,” said U.S. Attorney Darcie N. McElwee. “Any sentence, no matter how lengthy, can only go so far in providing justice for such heinous acts inflicted upon children, but I hope it provides comfort to all he victimized. My office will continue to prioritize child exploitation prosecutions to protect Maine children from predators like Mr. Hall.”
“Hall was a repeat offender who not only possessed and traded in child sexual abuse material, but directly abused and exploited children. His previous conviction shows he is clearly a danger to the community and today’s significant sentence will keep him away from children for a very long time,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “With the conclusion of this case, we hope those he victimized can find some amount of closure and peace as they move forward.”
Homeland Security Investigations and the Maine State Police investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org or 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.
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Rapid City Woman Sentenced to Eight Years in Federal Prison for Facilitating Live Broadcast of Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier sentenced a Rapid City, South Dakota, woman convicted of Aiding and Abetting the Distribution of Child Pornography. The sentencing took place on October 31, 2024.
Krystal Kay Bulin, 30, was sentenced to eight years in federal prison, followed by five years of supervised release. She was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $3,000 in restitution to her victim. Bulin will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
A federal grand jury indicted Bulin in November of 2023 for Sexual Exploitation of a Minor by a Parent or Guardian and Aiding and Abetting Distribution of Child Pornography. She pleaded guilty on August 2, 2024.
The investigation began when a concerned citizen alerted law enforcement after observing a 16-year-old minor engaging in sexually explicit conduct while broadcasting on the online streaming platform “BuzzCast.” The South Dakota Internet Crimes Against Children Task Force determined the minor lived in Rapid City, and that the defendant was facilitating the livestream in order to make money for a speeding ticket she received. The defendant, the victim’s temporary guardian, repeatedly typed messages to viewers and moderated the chat room in which viewers were watching and commenting on the minor’s exploitation in real time. One of the viewers sent the defendant $100 via CashApp as payment for the child pornography he watched of the victim.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the South Dakota Internet Crimes Against Children Taskforce, the Rapid City Police Department, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Heather Knox prosecuted the case.
Bulin was immediately remanded to the custody of the U.S. Marshals Service.
Quincy, Illinois, Man Sentenced to 108 Months for Possessing a Firearm as a Felon and Violating His Supervised ReleaseRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois, man, Donte Clausell, 36, was sentenced on October 31, 2024, by U.S. District Judge Colleen R. Lawless, to 96 months in prison for possessing a firearm as a convicted felon. Judge Lawless also sentenced Clausell to 12 months in prison, to be served consecutively to his other sentence, for violating his supervised release. At the time he unlawfully possessed the firearm, Clausell was serving a sentence of supervised release for a drug distribution conviction in the Eastern District of Missouri.
On September 26, 2020, Clausell knowingly possessed a firearm containing an extended ammunition clip that was loaded with 31 rounds of ammunition. Clausell was indicted in November 2020 and plead guilty in February 2023.
The statutory penalties for possessing a firearm as a convicted felon are up to 15 years of imprisonment, up to a $250,000 fine, and up to a three-year term of supervised release.
This case was investigated by the Quincy Police Department and the Illinois State Police. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Clausell is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Poteau Resident Sentenced for Drug DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Shauna Raye Henderson, age 46, of Poteau, Oklahoma, was sentenced to 24 months each for one count of distribution of fentanyl and one count of distribution of methamphetamine. The terms are set to be served concurrently.
The charges arose from an investigation by the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics, the Oklahoma Bureau of Investigation, and the District 16 Drug Task Force.
On March 12, 2024, Henderson pleaded guilty to the charges. According to investigators, on March 9, 2023, Henderson sold pills containing approximately 5 grams of fentanyl, a Schedule II controlled substance. On June 22, 2023, Henderson sold approximately 55 grams of methamphetamine, a Schedule II controlled substance.
The Honorable John C. Coughenour, Senior U.S. District Judge in the United States District Court for the Western District of Washington, sitting by assignment, presided over the hearing in Muskogee, Oklahoma. Henderson will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jordan Howanitz represented the United States.
Port St. Lucie Firearms Dealer Charged with Failing to Keep Proper Records of SalesRead the Press Release
MIAMI – On Nov. 1, Michael John Pellicione, 76, the owner of a Port St. Lucie gun shop who operated out of his residence, was arraigned on a federal indictment charging him with selling several firearms “off the books” in violation of 18 U.S.C. § 922(b)(5), which penalizes the failure of a firearms dealer to keep a proper record of sales.
According to allegations contained in court documents filed in this matter, Pellicione, a federal firearms licensee (FFL), failed to enter the sale of five firearms into his acquisition and disposition (A&D) record. Federal law requires an FFL to record, in the A&D book, all of the firearms that the FFL receives or makes, and then indicate where each of those firearms are – whether they are still in the FFL’s inventory or where they went if they were sold or transferred. Additionally, the A&D book must include the type of firearm, the make, model, caliber, and serial number, the date and from whom the firearm was received and that person's address, as well as the name, date, and address of the person to whom the firearm was sold or transferred.
If convicted of the charged offense, Pellicione faces up to five years’ imprisonment.
Markenzy Lapointe, U. S. Attorney for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, made the announcement.
HSI Fort Pierce and ATF Fort Pierce investigated this case. Managing Assistant U.S. Attorney Carmen Lineberger is prosecuting this matter.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 24-cr-14055.
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Pittsburgh Man Pleads Guilty to Possession of Controlled Substances in PrisonRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court on October 30, 2024, to charges of possession of contraband in prison, United States Attorney Eric G. Olshan announced today.
Lafon Ellis, 30, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the Court was advised that Ellis, while a federal inmate housed at the Allegheny County Jail, possessed various controlled substances on May 3, 2023, and again on December 10, 2023.
Judge Bissoon scheduled sentencing for February 20, 2025. The law provides for a maximum total sentence of up to 20 years in prison, a fine of up to $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The U.S. Marshals Service, with the assistance of the Allegheny County Police, conducted the investigation that led to the prosecution of Ellis.
Owner and Senior Executive of New York Contracting Company Plead Guilty to Paying Kickbacks to Obtain Construction Contracts from A Fortune 500 CompanyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that TROY CARUSO, the owner and chief executive officer of a commercial construction and contracting company headquartered in New York, New York (the “Contracting Company”), and JOHN NOLAN, a senior executive at the Contracting Company, pled guilty Friday, November 1, 2024, to conspiring to commit honest services wire fraud in connection with their scheme to pay kickbacks to a senior project manager at a Fortune 500 real estate services firm in order to obtain contracting work. CARUSO and NOLAN pled guilty before U.S. District Judge Lewis J. Liman, who is scheduled to sentence CARUSO on February 12, 2025, and NOLAN on February 13, 2025.
U.S. Attorney Damian Williams said: “Corruption has no place in our business landscape. Troy Caruso and John Nolan sought to exploit the system for their own benefit, but today’s outcome shows that integrity will prevail. This Office is dedicated to ensuring that the integrity of our contracting processes is upheld, and we will relentlessly pursue those who engage in such dishonest schemes.”
According to the documents filed in this case, including the Indictment and the plea agreements of CARUSO and NOLAN, and statements made in Court:
From at least in or about February 2021, up to and including in or about September 2023, CARUSO and NOLAN agreed to pay, and did pay, kickbacks to an employee of a global and publicly traded commercial real estate services company (the “Real Estate Firm”) in exchange for assistance and preferential treatment so that the Contracting Company would be awarded projects managed by the Real Estate Firm (the “Kickback Scheme”).
In or about March 2021, CARUSO and NOLAN were introduced by an individual (“CC-1”) to a senior project manager at the Real Estate Firm (“CC-2”). CC-2 managed the process by which contracting companies bid for, and were awarded, contracts to work on construction projects for various of the Real Estate Firm’s clients. Beginning in or about March 2021, because of the Kickback Scheme, CC-2 took a series of actions CC-2 otherwise would not have taken to ensure that the Contracting Company was awarded a pre-construction contract and a construction contract relating to a certain project (“Project-1”), which was managed by the Real Estate Firm on behalf of its client, a health services business that provides hospital, medical, and other health services to patients. For example, CC-2 ensured that the Contracting Company was on the Real Estate Firm’s “bid list” so that it could submit bids relating to Project-1 that it otherwise could not have submitted. CC-2 also provided non-public information to CARUSO and NOLAN about the bidding process, and recommended the Contracting Company for both the pre-construction contract and the construction contract relating to Project-1. As a result of the Kickback Scheme and CC-2’s actions, the Contracting Company was awarded the pre-construction and construction contracts for Project-1, the latter of which was valued at approximately $3.55 million (to be paid to the Contracting Company).
In exchange for CC-2’s assistance and preferential treatment, CARUSO and NOLAN agreed to pay kickbacks to CC-2 in the amount of approximately one percent of the construction value of any project managed by the Real Estate Firm that resulted in a contract award to the Contracting Company. Accordingly, CARUSO and NOLAN agreed to pay CC-2 approximately $35,500 for Project-1, and ultimately paid CC-2 approximately $33,000 in kickbacks for CC-2’s assistance on Project-1. Most of these payments were made in cash at locations around New York City. CARUSO and NOLAN also paid CC-1 approximately $15,000 for CC-1’s assistance in the Kickback Scheme, which included connecting CC-2 with CARUSO and NOLAN.
CARUSO and NOLAN attempted to obtain additional contracts from the Real Estate Firm, with CC-2’s assistance as part of the Kickback Scheme. Between in or about 2022 and in or about 2023, in exchange for CARUSO and NOLAN’s promise of payment for any contract awarded to the Contracting Company, CC-2 provided CARUSO and NOLAN with assistance relating to two additional construction projects managed by the Real Estate Firm that did not result in contract awards to the Contracting Company.
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CARUSO, 57, of Smithtown, New York, and Ludlow, Vermont, and NOLAN, 43, of Brooklyn, New York, each pled guilty to one count of honest services wire fraud conspiracy, which carries a maximum sentence of 20 years in prison.
The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as the defendants’ sentences will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Special Agents and the Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams also thanked the Federal Bureau of Investigation for their assistance in the investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Jane Kim is in charge of the prosecution.
Orlando, Florida Man Convicted of Wire Fraud ConspiracyRead the Press Release
Rutland, Vermont – The United States Attorney for the District of Vermont announced that on Friday, November 1, 2024, Nasir Hussain, also known as “Sonu”, 31, of Orlando, Florida was convicted in U.S. District Court in Rutland of wire fraud conspiracy after a four-day jury trial. U.S. District Judge Joseph N. Laplante ordered that Hussain remain in jail pending sentencing, which has not been scheduled. Hussain has been held without bail since his arrest in July 2023.
According to court records and evidence presented at trial, Hussain recruited a number of people to open bank accounts using false information. Those bank accounts were used to funnel proceeds from defrauded victims who lived in Vermont, California, and elsewhere in the United States. Under the fraud scheme, the victim would receive calls, emails or both – purportedly from well-known retail establishments about charges to the victim’s account. The victim was asked to call a certain number and eventually download software to enable the caller to view the screen of the victim’s computer to “refund” the charge if the victim desired.
In reality, however, that software enabled the caller to access the victim’s computer remotely – not just view the screen. The caller then pretended to cancel the requested service at the victim’s request and provide the requested refund. The caller made it look like they had provided too large of a refund, often by moving around money from the victim’s own accounts. When the victim went to return what they thought was the over-refund, they were actually giving away their own money. The callers told their victims to send their money to the bank accounts that Hussain and his conspirators had opened. From there, Hussain and his conspirators funneled the victims’ funds to various individuals in India.
Based on the jury’s verdict, Hussain faces a maximum of 20 years in prison. In a separate case still pending, Hussain faces charges of knowingly making false statements in connection with his application for permanent residence status. Hussain faces a maximum of 10 years in prison on that charge. The actual sentence will be determined with reference to Federal Sentencing Guidelines and the statutory sentencing factors.
“Fraud schemes like the one perpetrated by Hussain are complex and tend to prey on vulnerable victims,” said United States Attorney Nikolas P. Kerest. “These fraud schemes are also far too common and require vigilance by community members and law enforcement alike. This case demonstrates that the U.S. Attorney’s Office and our partners hold perpetrators of cybercrime accountable. Moving forward, we will continue to investigate and prosecute these fraud schemes and also provide education to the community on how to avoid becoming a victim.”
“Mr. Hussain is a scam artist involved in a sophisticated criminal network that targeted innocent victims and robbed them of their hard-earned money,” said Craig Tremaroli, Special Agent in Charge of the Federal Bureau of Investigation’s Albany Field Office. “The FBI will continue to work with our partners at the United States Attorney’s Office to identify and disrupt any individual or criminal organization looking to use technology to scam our citizens.”
United States Attorney Nikolas P. Kerest also commended the investigative work of the Federal Bureau of Investigation and thanked the U.S. Marshals Service for their assistance during trial.
At trial, Assistant U.S. Attorneys Eugenia P. Cowles and Colin Owyang represented the government. Kevin Henry, Esq. of Primmer, Piper, Eggleston & Cramer, PC represented Hussain.
Orlando Woman Sentenced for Role in Construction-Related Wire Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Wendy Cudemo (48, Orlando) to 27 months in federal prison for conspiracy to commit wire fraud. The Court also entered an order of forfeiture in the amount of $787,911.00, the proceeds of the wire fraud conspiracy and ordered the forfeiture to the United States of real property located in Palmetto, Florida. Cudemo pled guilty on July 16, 2024.
According to court documents, Cudemo owned and managed a construction company which purported to supply construction services and labor for construction contractors and subcontractors. In order to comply with Florida law, Cudemo’s company was required to secure and maintain adequate worker’s compensation insurance coverage. Her company had agreements with contractors and subcontractors to use workers purported to be Cudemo’s employees at construction sites and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Cudemo or others would then regularly receive “payroll checks” from contractors that were cashed at various financial institutions to pay Cudemo’s purported “employees” and other related expenses.
During the period charged, Cudemo falsely and fraudulently represented in insurance applications that her company had a very limited payroll and a very limited number of employees who worked on construction jobsites. Cudemo also falsely and fraudulently sent wire communications to numerous contractors representing that her company’s employees had full worker’s compensation coverage. In reality, Cudemo’s company received and cashed more than $7,800,000 in checks from various construction contractors for these purported Cudemo “employees.” These payroll figures far exceeded the very limited payroll figures that Cudemo had reported to her worker’s compensation insurance company. As a result, these employees, in reality the employees of other entities, performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were thus being manipulated to cover.
As a result of these misrepresentations, Cudemo’s company also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for those duties as well.
This case was investigated by Homeland Security Investigations and the State of Florida Department of Financial Services. It is part of a lengthy investigation by those agencies into the use of shell companies and “ghost” employees in the construction industry. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Omaha Man Sentenced for Possession of Cocaine as Repeat OffenderRead the Press Release
United States Attorney Susan Lehr announced that Ricardo Muro, age 42, of Omaha, Nebraska, was sentenced November 4, 2024, in federal court in Omaha for possession with intent to distribute 500 grams or more of cocaine. United States District Judge Brian C. Buescher sentenced Muro to 225 months’ imprisonment. There is no parole in the federal system. After Muro’s release from prison, he will begin an 8-year term of supervised release.
On January 17, 2023, agents with a DEA task force intercepted a package of marijuana addressed to Muro's business in Omaha. A controlled delivery of the package and search of the business pursuant to a search warrant uncovered more marijuana and THC gummies. Muro's house in Omaha was also searched pursuant to a warrant. Inside, agents found approximately one kilogram of cocaine, marijuana, THC cartridges, and $9,380 cash.
Muro has two prior federal drug trafficking convictions, which enhanced his statutory minimum sentence and his advisory guideline sentence. The $9,380 will be ordered forfeited to the United States as proceeds of illegal drug trafficking.
This case was investigated by the Drug Enforcement Administration and the Nebraska State Patrol.
Ohio Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Terric Zaire Williams, 25, of Akron, Ohio, pleaded guilty today to possession with intent to distribute 50 grams or more of a substance containing methamphetamine.
According to court documents and statements made in court, on March 29, 2023, law enforcement officers executed a search warrant at a Charleston apartment where Williams was staying. Officers seized three-quarters of a pound of methamphetamine from a dining room trash can and a living room closet during the search. Williams admitted to possessing the seized methamphetamine and intending to distribute it.
Williams is scheduled to be sentenced on February 27, 2025, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department.
United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Lesley C. Shamblin is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-67.
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Northern Minnesota Man Indicted for “Cryptojacking” SchemeRead the Press Release
MINNEAPOLIS – A northern Minnesota man has been indicted for an illegal “cryptojacking” scheme that caused significant financial losses, announced U.S. Attorney Andrew M. Luger.
According to court documents, in February 2020, Joshua Paul Armbrust, 44, of Orr, Minnesota, resigned from his employment at Digital River, a Minnetonka-based global e-commerce and payment processing company. After leaving his job, between December 2020 and May 2021, Armbrust engaged in a cryptojacking scheme using accounts belonging to his former employer. Cryptojacking is a form of cybercrime where an unauthorized party uses someone else's computing resources to mine cryptocurrency, such as Bitcoin or Ethereum, by leveraging the victim's hardware, which can lead to reduced system performance, increased energy consumption, and higher operating costs.
As part of the scheme, Armbrust remotely accessed the company’s Amazon Web Services (AWS) account on multiple occasions without authorization and utilized AWS computers to mine Ethereum cryptocurrency. This unauthorized access resulted in substantial costs for the company, totaling over $45,000. The mined Ethereum was directed into a digital wallet and subsequently transferred to two Coinbase accounts registered solely in Armbrust’s name. Armbrust then liquidated the mined Ethereum, totaling over $7,000, and transferred the proceeds to his Wells Fargo banking account.
The indictment charges Armbrust with one count of computer fraud. Armbrust made his initial appearance on November 1, 2024, in U.S. District Court before Magistrate Judge John F. Docherty.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
North Texas Medical Center Pays $14.2 Million to Resolve Potential False Claims Act Liability for Self-Reported Violations of Medicare Regs, Stark LawRead the Press Release
A local medical center has paid $14.2 million to settle potential violations of Medicare regulations and the physician self-referral law (commonly known as the Stark Law) related to four outpatient surgery centers located in Dallas County, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. The United States contends that these potential violations resulted in liability under the False Claims Act.
Horizon Medical Center of Denton, which is owned by Corinth Investor Holdings, L.L.C. and operates a long-term acute care hospital with multiple Dallas County outpatient surgery centers, voluntarily self-disclosed its conduct to the Department of Justice. Specifically, Horizon self-disclosed that when submitting claims for payment to Medicare, it failed to include a “PN” modifier and location to identify services that were provided at its non-excepted off-campus outpatient facilities in Dallas, Richardson, and Coppell. As part of its disclosure, Horizon provided an analysis from an independent third-party expert regarding the financial impact of omitting the “PN” modifier. It also disclosed the existence of Hospital Department Management Agreements at each facility by which Horizon contracted with certain third-party management companies that were affiliated with physicians performing surgery at the outpatient facilities, as well as Operating Lease Agreements by which Horizon contracted for the lease of certain equipment from companies directly or indirectly owned by a physician performing procedures at the surgery centers. These agreements created financial relationships between Horizon and the physician-owners.
“This office will continue to make sure that companies follow the rules of the road when submitting claims to federal healthcare programs,” said U.S. Attorney Leigha Simonton. “And while we will never condone unlawful conduct, we will continue to credit companies that voluntarily self-disclose misconduct prior to the government initiating an investigation.”
The Horizon settlement is the latest in a string of three civil settlements announced by the U.S. Attorney’s Office for the Northern District of Texas over the last year in which the settling party received credit for making a self-disclosure under the Department of Justice’s Guidelines for Taking Disclosure, Cooperation, and Remediation into Account in False Claims Act Matters.
In another case, Oliver Street Dermatology Management (d/b/a U.S. Dermatology Partners) paid the United States $8.9 million after self-disclosing that credible evidence suggested that former senior managers had offered to increase the purchase price of 11 dermatology practices acquired by the company in return for an agreement by the practices’ providers to refer services to Oliver Street affiliated entities, in possible violation of the Stark Law and the Anti-Kickback Statute.
And in a third case, Consolidated Nuclear Security, L.L.C., which operates the Pantex Nuclear Weapons Plant in Amarillo, paid $18.4 million after self-disclosing that certain production technicians at the plant fraudulently recorded on their timesheets hours they did not work.
In all three cases noted above, the self-reported conduct was unknown to the United States at the time of the self-disclosure and was specific as to the nature of the potentially problematic transactions, the personnel involved, and the potential financial impact on the government. All three settlements credited the companies for their self-disclosure and collaboration with government investigators. The claims resolved by the settlement agreements are allegations only, and there has been no determination of liability.
These civil settlements come as the U.S. Attorney’s Office for the Northern District of Texas announced its implementation of the recent USAO-wide voluntary self-disclosure (VSD) policy, which aims to provide transparency and predictability to companies and the defense bar concerning the benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate, and timely and appropriately remediate. The goal of the policy is to standardize how voluntary self-disclosures are defined and credited by U.S. Attorney’s Offices nationwide. It is also intended to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in investigations.
The Horizon resolution is the result of a coordinated effort between the U.S. Attorney’s Office for the Northern District of Texas and the U.S. Department of Health & Human Services’ Office of Inspector General. This matter was handled by Assistant U.S. Attorneys Ken Coffin and Brian Stoltz.
New Orleans Man Guilty of Possession with Intent to Distribute Tapentadol, Marijuana and Drug Trafficking Related Firearm PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that KENDRICK WILLIAMS (“WILLIAMS”), age 20, pled guilty before U.S. District Judge Jay C. Zainey on October 22, 2024 to possession with intent to distribute tapentadol and, possession with intent to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, WILLIAMS advertised the sale of tapentadol and marijuana on social media. Law enforcement officers executed two search warrants at WILLIAMS’s residence and recovered over 800 tapentadol pills, one pound of marijuana, two Glock Model handguns with extended magazines, and over $9,000 in cash.
As to each of his drug trafficking convictions, WILLIAMS faces up to 20 years in prison, up to a $1,000,000 fine, and at least three years of supervised release. As to his conviction for possessing a firearm in furtherance of a drug trafficking crime, he faces a mandatory minimum sentence of five years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. Each individual count also carries a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.
New Orleans Man Guilty of Federal Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA –MERVYN LUCAS (“LUCAS”), age 33, pled guilty on October 31, 2024 before U.S. District Judge Eldon E. Fallon, to possession with intent to distribute marijuana, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(D); possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i); and possession of a car stolen from the Norfolk Southern Railyard, in violation of 18 U.S.C. § 659.
According to court documents, law enforcement tracked a brand-new Ford F-150 Raptor, stolen from the Norfolk Southern Railyard, to LUCAS’s residence. The vehicle had a fraudulent temporary license plate and, inside the residence in an envelope addressed to LUCAS, was a second fraudulent plate. Additionally, law enforcement found over 10 pounds of vacuum-sealed marijuana for distribution in LUCAS’s residence as well as a Romarm/Cugir Model Micro Draco firearm loaded with over 40 rounds of ammunition. LUCAS possessed the firearm and ammunition in furtherance of that drug trafficking crime.
As to his conviction for possession with intent to distribute marijuana, LUCAS faces up to five years in prison and a minimum of two years of supervised release. As to his conviction for possessing a firearm in furtherance of that drug trafficking crime, he faces a mandatory minimum sentence of five years up to life in prison, which must run consecutively to any other sentence, and up to three years of supervised release. As to his conviction for possession of the stolen F-150 Raptor, he faces up to 10 years in prison and three years of supervised release. Each count also carries up to a $250,000 fine and a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by Homeland Security Investigations and the Louisiana State Police. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
New Jersey Man Admits Aiding Conspiracy to Defraud the ElderlyRead the Press Release
ST. LOUIS – A man from New Jersey pleaded guilty Monday and admitted picking up cash and gold bars from elderly victims of a fraud conspiracy.
Andy R. Miqui-Castillo, 35, of Newark, pleaded guilty in U.S. District Court in St. Louis to one felony count of conspiracy to commit mail fraud and wire fraud. He admitted being recruited in October of 2023 to act as a courier for a conspiracy that targeted the elderly.
The conspirators contacted victims falsely claiming to be from various financial institutions or government agencies. They told them that their accounts had been compromised and were being used for illegal activity and induced victims to give them cash or valuables to stop that illegal activity. Miqui-Castillo was provided with the victims’ addresses, picked up cash or other valuables and then delivered or shipped it to co-conspirators in exchange for money.
Miqui-Castillo retrieved or attempted to retrieve cash and gold bars totaling more than $550,000 from four victims in October and November of 2023. He was paid $4,500. He picked up a total of $50,000 in cash and two 100-gram gold bars from two victims in New York and five 1-kilogram gold bars from a North Carolina victim. Miqui-Castillo was arrested by law enforcement on Nov. 17, 2023, while attempting to pick up three 1-kilogram gold bars worth $196,000 from a St. Louis area victim.
Miqui-Castillo is scheduled to be sentenced Feb. 11, 2025. The conspiracy charge carries a potential penalty of up to 20 years in prison, a $250,000 fine, or both prison and a fine.
The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
New England Doctor Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
Burlington, Vermont – A New England doctor pleaded guilty today to conspiring to illegally distribute controlled substances. This is the first joint prosecution of a doctor by the Justice Department’s New England Strike Force and U.S. Attorney’s Office for the District of Vermont.
“The defendant, a medical doctor based in New England, prescribed drugs to vulnerable patients in exchange for cash, knowing the patients were diverting the drugs,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The cases brought by the New England Strike Force, including today’s conviction, demonstrate the Criminal Division’s commitment to holding accountable medical professionals who endanger local communities by putting profits above their patients’ wellbeing.”
“When we announced the creation of the New England Strike Force, we said we would be focusing on medical professionals who put profits over their patients,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “Khan is an example of that — a bad apple in a profession that takes an oath to uphold ethical standards and treat patients as you would want to be treated. Putting profits over patients is a severe violation of that oath, and, in this case, a violation of federal criminal law. Today’s guilty plea is another step in holding Khan liable for his illegal conduct.”
According to court documents, Adnan S. Khan, M.D., 48, of Grantham, New Hampshire, conspired with others to illegally distribute controlled substances through his business, New England Medicine and Counseling Associates (NEMCA), which operated a network of clinics in New England that purportedly provided clinical treatment services for persons suffering from substance use disorder. Khan and a co-conspirator prescribed controlled substances to NEMCA patients despite knowing that their patients were diverting the prescriptions. Khan admitted that he and others required cash for purported office visits to received controlled substance prescriptions and falsified medical records to justify his illegal prescribing practices.
During the conspiracy, Khan emailed a co-conspirator a Justice Department press release announcing the creation of the New England Strike Force, a law enforcement partnership whose purpose is to identify and prosecute health care fraud and other criminal schemes impacting the New England region. In response, the co-conspirator stated that it is “clear that [references in the release to] ‘making profit off of patients’ is geared towards folks like us. Curious where this will lead.” Khan then emailed NEMCA staff and stated that “there is a new task force…[for the New England states] on the lookout for medical professionals who are prescribing scheduled meds irresponsib[ly], etc.” Khan warned his staff that “[i]t is not a matter of if someone from such a task force will visit NEMCA but rather a matter of time.” Khan then ordered his staff “NOT to engage or discuss anything [with the New England Strike Force] about NEMCA, what we do, what we offer, fees, etc.”
“Rather than providing responsible addiction treatment to his patients, Khan ran his medical practice with the corruption and recklessness of a common drug dealer,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “His actions put patients and the community at risk. Today’s guilty plea is the result of a coordinated effort with our law enforcement partners as we continue our fight against addiction and the opioid epidemic.”
“Khan and his co-conspirator exploited vulnerable patients and cashed in on the very dependencies he was entrusted to treat,” said Special Agent in Charge Craig Tremaroli of the FBI Albany Field Office. “Today’s plea proves he is no better than a street level drug dealer motivated by pure greed as opposed to the oath he took to ‘first, do no harm’ to his patients. The FBI will continue to work with our partners on the New England Strike Force and U.S. Attorney’s Office to identify and bring to justice any practitioner looking to line their pockets in complete disregard for patient welfare and viability of our healthcare framework.”
“Our communities deserve honest and trustworthy medical practitioners,” said Acting Diversion Program Manager George J. Lutz Jr. of the Drug Enforcement Administration (DEA)’s New England Field Division. “Individuals betraying this trust through the illegal prescribing of controlled substances will be fully investigated by the DEA. Today’s guilty plea reinforces the value of the coordinated efforts with our law enforcement partners working alongside prosecutors to hold corrupt and reckless practitioners accountable for their actions.”
“So many Vermonters have been impacted by the opioid epidemic, which is why we must hold bad actors accountable, particularly physicians who use their prescribing power and their positions of authority to profit from their patients’ pain and suffering,” said Vermont Attorney General Charity R. Clark on behalf of the office’s Medicaid Fraud & Residential Abuse Unit. “I am proud to partner with the U.S. Attorney’s Office and Department of Justice in this effort.”
Khan and a co-conspirator required patients — many of whom were economically disadvantaged — to pay $250 cash in exchange for drug prescriptions, despite many of these patients’ having health care benefit coverage. If a patient could not afford the full cash payment, Khan would lower the dosage of that patient’s prescription. Khan then used funds that he earned from these patients to, among other things, purchase an airplane and multiple properties in New England. Khan would also personally deposit the cash that he received from patients, including deposits in excess of $10,000, at his bank.
Khan also admitted that he and a co-conspirator discussed their concern that, because pharmacies were no longer willing to fill the prescriptions, NEMCA might lose “dishonest” patients who were “selling their meds.” Khan said that their “honest patients” were “the smaller part of [NEMCA’s] clientele” and advised a co-conspirator that “it’s the diverters [of the drugs that] we need to try to figure out a way to retain.” A co-conspirator emailed Khan, suggesting that they give $100 “scholarships” to patients who owed them money. Khan responded he was “[s]tuck on ‘who’ should get them. S[******] patients owe me so much that $100 won’t even put a dent on their account and they probably won’t appreciate it. Maybe the borderline ones who are just over the $250 threshold? They would probably get on their knees in gratitude.”
Khan pleaded guilty to one count of conspiring to illegally distribute controlled substances. A sentencing hearing will be scheduled on a later date. Khan faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
As a condition of Khan’s release, he is prohibited from writing prescriptions for controlled substances.
The HHS-OIG, FBI, DEA, and Vermont Attorney General’s Office’s Medicaid Fraud and Residential Abuse Unit investigated the case.
The Fraud Section partners with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout the country to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.
The Vermont Attorney General’s Office Medicaid Fraud and Residential Abuse Unit receives 75% of its funding from HHS-OIG under a grant award totaling $1,229,616 for federal fiscal year 2024. The remaining 25%, totaling $409,870 for federal fiscal year 2024, is funded by the State of Vermont.
Anyone needing access to opioid treatment services can contact HHS-OIG’s Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.
New England Doctor Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
A New England doctor pleaded guilty today to conspiring to illegally distribute controlled substances. This is the first joint prosecution of a doctor by the Justice Department’s New England Strike Force and U.S. Attorney’s Office for the District of Vermont.
“The defendant, a medical doctor based in New England, prescribed drugs to vulnerable patients in exchange for cash, knowing the patients were diverting the drugs,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The cases brought by the New England Strike Force, including today’s conviction, demonstrate the Criminal Division’s commitment to holding accountable medical professionals who endanger local communities by putting profits above their patients’ wellbeing.”
“When we announced the creation of the New England Strike Force, we said we would be focusing on medical professionals who put profits over their patients,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “Khan is an example of that — a bad apple in a profession that takes an oath to uphold ethical standards and treat patients as you would want to be treated. Putting profits over patients is a severe violation of that oath, and, in this case, a violation of federal criminal law. Today’s guilty plea is another step in holding Khan liable for his illegal conduct.”
According to court documents, Adnan S. Khan, M.D., 48, of Grantham, New Hampshire, conspired with others to illegally distribute controlled substances through his business, New England Medicine and Counseling Associates (NEMCA), which operated a network of clinics in New England that purportedly provided clinical treatment services for persons suffering from substance use disorder. Khan and a co-conspirator prescribed controlled substances to NEMCA patients despite knowing that their patients were diverting the prescriptions. Khan admitted that he and others required cash for purported office visits to received controlled substance prescriptions and falsified medical records to justify his illegal prescribing practices.
During the conspiracy, Khan emailed a co-conspirator a Justice Department press release announcing the creation of the New England Strike Force, a law enforcement partnership whose purpose is to identify and prosecute health care fraud and other criminal schemes impacting the New England region. In response, the co-conspirator stated that it is “clear that [references in the release to] ‘making profit off of patients’ is geared towards folks like us. Curious where this will lead.” Khan then emailed NEMCA staff and stated that “there is a new task force…[for the New England states] on the lookout for medical professionals who are prescribing scheduled meds irresponsib[ly], etc.” Khan warned his staff that “[i]t is not a matter of if someone from such a task force will visit NEMCA but rather a matter of time.” Khan then ordered his staff “NOT to engage or discuss anything [with the New England Strike Force] about NEMCA, what we do, what we offer, fees, etc.”
“Rather than providing responsible addiction treatment to his patients, Khan ran his medical practice with the corruption and recklessness of a common drug dealer,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “His actions put patients and the community at risk. Today’s guilty plea is the result of a coordinated effort with our law enforcement partners as we continue our fight against addiction and the opioid epidemic.”
“Khan and his co-conspirator exploited vulnerable patients and cashed in on the very dependencies he was entrusted to treat,” said Special Agent in Charge Craig Tremaroli of the FBI Albany Field Office. “Today’s plea proves he is no better than a street level drug dealer motivated by pure greed as opposed to the oath he took to ‘first, do no harm’ to his patients. The FBI will continue to work with our partners on the New England Strike Force and U.S. Attorney’s Office to identify and bring to justice any practitioner looking to line their pockets in complete disregard for patient welfare and viability of our healthcare framework.”
“Our communities deserve honest and trustworthy medical practitioners,” said Acting Diversion Program Manager George J. Lutz Jr. of the Drug Enforcement Administration (DEA)’s New England Field Division. “Individuals betraying this trust through the illegal prescribing of controlled substances will be fully investigated by the DEA. Today’s guilty plea reinforces the value of the coordinated efforts with our law enforcement partners working alongside prosecutors to hold corrupt and reckless practitioners accountable for their actions.”
“So many Vermonters have been impacted by the opioid epidemic, which is why we must hold bad actors accountable, particularly physicians who use their prescribing power and their positions of authority to profit from their patients’ pain and suffering,” said Vermont Attorney General Charity R. Clark on behalf of the office’s Medicaid Fraud & Residential Abuse Unit. “I am proud to partner with the U.S. Attorney’s Office and Department of Justice in this effort.”
Khan and a co-conspirator required patients — many of whom were economically disadvantaged — to pay $250 cash in exchange for drug prescriptions, despite many of these patients’ having health care benefit coverage. If a patient could not afford the full cash payment, Khan would lower the dosage of that patient’s prescription. Khan then used funds that he earned from these patients to, among other things, purchase an airplane and multiple properties in New England. Khan would also personally deposit the cash that he received from patients, including deposits in excess of $10,000, at his bank.
Khan also admitted that he and a co-conspirator discussed their concern that, because pharmacies were no longer willing to fill the prescriptions, NEMCA might lose “dishonest” patients who were “selling their meds.” Khan said that their “honest patients” were “the smaller part of [NEMCA’s] clientele” and advised a co-conspirator that “it’s the diverters [of the drugs that] we need to try to figure out a way to retain.” A co-conspirator emailed Khan, suggesting that they give $100 “scholarships” to patients who owed them money. Khan responded he was “[s]tuck on ‘who’ should get them. S[******] patients owe me so much that $100 won’t even put a dent on their account and they probably won’t appreciate it. Maybe the borderline ones who are just over the $250 threshold? They would probably get on their knees in gratitude.”
Khan pleaded guilty to one count of conspiring to illegally distribute controlled substances. A sentencing hearing will be scheduled on a later date. Khan faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
As a condition of Khan’s release, he is prohibited from writing prescriptions for controlled substances.
The HHS-OIG, FBI, DEA, and Vermont Attorney General’s Office’s Medicaid Fraud and Residential Abuse Unit investigated the case.
Trial Attorneys Thomas D. Campbell and Danielle H. Sakowski of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Gilman for the District of Vermont are prosecuting the case.
The Fraud Section partners with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout the country to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.
The Vermont Attorney General’s Office Medicaid Fraud and Residential Abuse Unit receives 75% of its funding from HHS-OIG under a grant award totaling $1,229,616 for federal fiscal year 2024. The remaining 25%, totaling $409,870 for federal fiscal year 2024, is funded by the State of Vermont.
Anyone needing access to opioid treatment services can contact HHS-OIG’s Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.
Narcotics and Loaded Glock .40 Used in Shooting Get Wilmington Career Offender 16 Years in Federal PrisonRead the Press Release
WILMINGTON, N.C. – Desmond Antonio Hines, also known as “Head,” has been sentenced to 196 months after the 35-year-old was found guilty by a federal jury for illegal possession of a firearm, which ballistics showed was used in a shooting two months earlier. Hines was sentenced for gun and drug charges and considered a career offender based on prior convictions for drug trafficking and assault, including a prior federal drug conviction.
“Neighbors called 911 when they saw Hines ditch his loaded Glock .40 in a patch of the azaleas as he tried to dodge police. Ballistics traced the gun to a recent shootout that left a popular area rapper dead,” said U.S. Attorney Michael F. Easley, Jr. “A celebration of life for the rapper was shot up weeks later, leaving two men, a teen, and a 6-year-old boy shot. Hines was just a small part the escalating patterns of crime and violence claiming far too many lives. But neighbors have had enough. And when neighbors start talking, the shooting starts stopping.”
According to court records and evidence presented in court, on November 7, 2020, Wilmington Police stopped Hines for traffic violations. Upon approaching the car, the officer noticed an odor of marijuana and asked Hines to step out of the vehicle to conduct a search. A blunt and marijuana were found in the car and, during the search of Hines, the officer felt what he believed to be a metal object between the defendant’s legs. While the officer attempted to secure Hines in handcuffs, he tried to flee but was tackled by the officer. A subsequent search of Hines conducted at the police station uncovered a bag containing ten oxycodone pills and about 17 grams of crack cocaine.
On March 31, 2022, detectives attempted to arrest Hines on federal charges related to the November 7 incident. Officers surveilled him driving a new Chrysler minivan. During surveillance, officers lost sight of Hines after he made a series of evasive maneuvers. After officers located Hines and placed him into custody, 911 dispatch reported a call from area residents who saw a man matching Hines’ description and driving a minivan stop the vehicle, walk to a patch of azalea bushes, and toss something into the bushes before driving off. Upon pulling back the bushes, witnesses saw a firearm. When police responded to the scene, which was approximately half a mile from where Hines was arrested, they recovered a semi-automatic Glock 27 Gen 4 .40 caliber handgun with an extended magazine containing 20 live rounds of ammunition. Ten of those rounds were a distinctive, red-tipped round known as Hornady Critical Defense. When executing a search warrant at the defendant’s residence, detectives found a box of the same ammunition, with ten rounds missing. Later, testing of the firearm confirmed that Hines’ DNA was present. Ballistics traced the gun to the scene of a shootout two months earlier that left a man dead.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and U.S. Attorney Michael Easley and Assistant U.S. Attorney Erin Blondel prosecuted the case.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP), a collaborative effort of local, state, and federal law enforcement agencies working with the community to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, interagency coordination, and intelligence-led policing.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:22-cr-36-M.Mississippi Man Guilty of Methamphetamine Distribution and Felon in Possession of FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that on October 29, 2024, JARVIS WILSON (“WILSON”), age 39, a resident of Jackson, Mississippi, pled guilty to Counts Two and Four of the indictment pending against him. Count 2 charged WILSON with distribution of 500 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(A). Count 4 charged WILSON with being a felon in possession of firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, on or about April 8, 2024, WILSON, sold five hundred (500) grams or more of methamphetamine, to an undercover special agent. On April 8, 2024, agents searched WILSON’s residence due to his drug trafficking. During the search, agents recovered ammunition, a Ruger Model LCR, .22 caliber revolver, and a Smith & Wesson Model 1000 Super, 12-gauge shotgun.
At sentencing, as to Count 2, WILSON faces a mandatory minimum sentence of 10 years, up to life imprisonment, up to a $10,000,000 fine, and at least 5 years of supervised release. As to Count 4, he faces up to 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. WILSON also faces payment of a $100 mandatory special assessment fee for each individual count.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crime Unit.
Minnesota and South Dakota Men Sentenced to Federal Prison for Conspiracy to Distribute Methamphetamine Throughout the Sioux Falls AreaRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Worthington, Minnesota, man and a Brandon, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance.
Keophothone Rounoubon, age 31, was sentenced on April 16, 2024, to 11 years and three months in federal prison, followed by five years of supervised release.
Tremaine Vang Sihavong, age 35, was sentenced on October 28, 2024, to five years and 10 months in federal prison, followed by five years of supervised release.
Rounoubon and Sihavong were indicted by a federal grand jury in August of 2023. Rounoubon pleaded guilty on January 26, 2024, and Sihavong pleaded guilty on August 16, 2024.
Starting in approximately 2020 and ending in approximately 2023, these two defendants agreed together and with others to sell methamphetamine throughout the Sioux Falls area. The conspiracy involved tens of pounds of methamphetamine and thousands of dollars in drug proceeds.
This case was investigated by the FBI. Assistant U.S. Attorney Elizabeth A. Ebert-Webb prosecuted the case.
Rounoubon and Sihavong were remanded to the custody of the U.S. Marshals Service to continue serving their sentences.
Mexican National Pleads Guilty to Aggravated Identity TheftRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that Antonino Resendiz Badillo (39, Mexico) today pleaded guilty to aggravated identity theft. Badillo faces a penalty of two years in federal prison, consecutive to any other term of imprisonment. A sentencing date has not yet been set.
According to the plea agreement, E-Verify is a web-based system through which employers electronically confirm the employment eligibility of their employees. E-Verify is administered by the Social Security Administration (SSA) and U.S. Citizenship and Immigration Services (USCIS). The SSA and USCIS check the submitted information against the records of actual persons who are authorized to work in the United States. E-Verify is a voluntary program for employers and requires documents such as a Social Security number and photo identification of a prospective employee.
From at least 2022 through May 2024, Badillo used another person’s means of identification to defeat the E-Verify system and to commit the felony offenses of Misuse of a Social Security Number and False Claim of United States Citizenship for Employment Purposes.
This case was investigated by Homeland Security Investigations, the Department of Transportation–Office of Inspector General, the Social Security Administration–Office of Inspector General, the United States Border Patrol, the Department of Labor–Office of Inspector General, the Florida Department of Law Enforcement, and the Pinellas County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
McKeesport Felon Sentenced to Prison for Possession of Firearm and AmmunitionRead the Press Release
PITTSBURGH, Pa. - A resident of McKeesport, Pennsylvania, was sentenced on October 31, 2024, to 33 months in prison for violating federal firearm laws and conditions of his federal supervised release, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Jared Abraham Ogrosky, 26, also ordering Ogrosky to serve three years of supervised release following his prison term.
Ogrosky previously pleaded guilty in this case to possessing a firearm and ammunition as a convicted felon on March 12, 2024. Federal law prohibits possession of a firearm or ammunition by a convicted felon. Additionally, Ogrosky admitted to violating several conditions of his supervised release following his earlier convictions for trafficking in heroin and fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Assistant United States Attorney V. Joseph Sonson prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives; Allegheny County District Attorney Narcotics Enforcement Team; and U.S. Marshals Service for the investigation leading to the successful prosecution of Ogrosky.
Mason City Woman Sentenced to over Three Years in Federal Prison for Being a Drug User in Possession of FirearmsRead the Press Release
A drug user who possessed firearms was sentenced November 1, 2024, to 37 months in federal prison.
Brittany Graham, age 37, of Mason City, Iowa, received the sentence after a June 3, 2024, guilty plea to one count of being a prohibited person in possession of firearms. At the plea hearing, Graham admitted that, in August 2022, she possessed four handguns while she was an unlawful user of marijuana. The evidence at sentencing showed that Graham had possessed seven handguns since 2018. Other prohibited persons later possessed some of these guns, including a .357 magnum revolver that was seized from a felon in Chicago less than seven months after Graham purchased it.
Graham was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Graham was sentenced to 37 months’ imprisonment. She must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mason City Police Department, the Cerro Gordo County Sheriff’s Office, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 23-3014.
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Man Arrested and Charged with Attempting to Use a Weapon of Mass Destruction and to Destroy an Energy Facility in NashvilleRead the Press Release
WASHINGTON – Skyler Philippi, 24, of Columbia, Tennessee, was arrested by federal agents and charged with attempting to use a weapon of mass destruction and attempting to destroy an energy facility.
“As charged, Skyler Philippi believed he was moments away from launching an attack on a Nashville energy facility to further his violent white supremacist ideology -- but the FBI had already compromised his plot,” said Attorney General Merrick B. Garland. “This case serves as yet another warning to those seeking to sow violence and chaos in the name of hatred by attacking our country’s critical infrastructure: the Justice Department will find you, we will disrupt your plot, and we will hold you accountable. I am grateful to the public servants of the FBI for their extraordinary work on this case and for the work they do every day to keep our country safe.”
“Those fueled by hate and inspired to violence by racial or ethnic bias pose a grave threat to our national security,” said Deputy Attorney General Lisa Monaco. “As alleged in today’s charges, Skyler Philippi, a man dedicated to white supremacist ideology and the destruction of our critical infrastructure, planned to attack Nashville’s power grid using a drone carrying an explosive device. Thanks to brave work by the FBI, his scheme was thwarted. We will continue to work with our law enforcement partners to identify, disrupt, and hold accountable those who seek to wage such hate-fueled violence, which has no place in America or anywhere else.”
“Driven by a racially motivated extremist ideology, the defendant allegedly planned to attack the power grid with a drone and explosives, leaving thousands of Americans and critical infrastructure like hospitals without power,” said FBI Director Christopher Wray. “The FBI’s swift work led to the detection and disruption of the defendant’s plot before he could cause any damage. We are committed to hold accountable anyone who threatens or plans harm to critical infrastructure or seeks to hurt American communities through domestic violent extremism.”
“Dangerous threats to our critical infrastructure threaten every member of this community and will not be tolerated” said Acting U.S. Attorney Thomas J. Jaworski for the Middle District of Tennessee. “We will always work with our law enforcement partners to identify and stop any and all efforts to wreak this kind of havoc and will not hesitate in prosecuting those involved to the fullest extent of the law.”
“As alleged, the defendant in this case conducted extensive research into explosive devices and potential targets to launch an attack against critical infrastructure,” said Special Agent in Charge Joe Carrico of the FBI Nashville Field Office. “The FBI is committed to doing everything in our ability to detect, disrupt, and deter attacks by domestic violent extremists, and will continue to pursue those who look to commit acts of violence in furtherance of their ideological beliefs.”
Beginning in June 2024, Philippi told a confidential human source (CHS) about his desire to commit a mass shooting at a YMCA facility located in or around Columbia, Tennessee. In July 2024, Philippi told another CHS about the impact of attacking large interstate substations and said that attacking several substations would “shock the system,” causing other substations to malfunction. Philippi researched previous attacks on electric substations and concluded that attacking with firearms would not be sufficient. Philippi, therefore, planned to use a drone with explosives attached to it and to fly the drone into the substation.
In September 2024, Philippi drove with undercover employees (UCEs) of the FBI to an electric substation previously researched and targeted by Philippi, and Philippi conducted reconnaissance of the substation. While driving, Philippi ordered a plastic explosive composition known as C-4 and other explosives from the UCEs. Philippi later purchased black powder to be used in pipe bombs, which Philippi intended to use during the attack on the substation. Philippi texted the CHS: “if you want to do the most damage as an accelerationist, attack high economic, high tax, political zones in every major metropolis.” Referring to the substation, Philippi stated, “Holy sh**. This will go up like a fu**in fourth of July firework.” Philippi talked about operational security, including the need for disguises, the use of leather gloves (because latex and nitrile gloves can transfer fingerprints), wearing shoes that are too big, the need to burn their clothes after the attack, and not bringing smartphones on the night of the attack.
On Nov. 2, 2024, Philippi participated in a Nordic ritual, which included reciting a Nordic prayer and discussing the Norse god Odin. Philippi told the UCEs that “this is where the New Age begins” and that it was “time to do something big” that would be remembered “in the annals of history.” Philippi and the UCEs drove to the operation site. The UCEs moved to their assigned positions as lookouts for Philippi. Law-enforcement agents arrested Philippi. When he was taken into custody, Philippi was at the rear of the vehicle, with the drone powered up, and the explosive device was armed and located next to the drone.
Philippi is charged with attempted use of a weapon of mass destruction and attempted destruction of an energy facility. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Nashville Field Office is investigating the case.
Assistant U.S. Attorney Josh Kurtzman of the Middle District of Tennessee and Trial Attorneys Justin Sher and James Donnelly of the National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Arrested and Charged with Attempting to Use a Weapon of Mass Destruction and to Destroy an Energy Facility in NashvilleRead the Press Release
View the complaint here.
Skyler Philippi, 24, of Columbia, Tennessee, was arrested by federal agents and charged with attempting to use a weapon of mass destruction and attempting to destroy an energy facility.
“As charged, Skyler Philippi believed he was moments away from launching an attack on a Nashville energy facility to further his violent white supremacist ideology – but the FBI had already compromised his plot,” said Attorney General Merrick B. Garland. “This case serves as yet another warning to those seeking to sow violence and chaos in the name of hatred by attacking our country’s critical infrastructure: the Justice Department will find you, we will disrupt your plot, and we will hold you accountable. I am grateful to the public servants of the FBI for their extraordinary work on this case and for the work they do every day to keep our country safe.”
“Those fueled by hate and inspired to violence by racial or ethnic bias pose a grave threat to our national security,” said Deputy Attorney General Lisa Monaco. “As alleged in today’s charges, Skyler Philippi, a man dedicated to white supremacist ideology and the destruction of our critical infrastructure, planned to attack Nashville’s power grid using a drone carrying an explosive device. Thanks to brave work by the FBI, his scheme was thwarted. We will continue to work with our law enforcement partners to identify, disrupt, and hold accountable those who seek to wage such hate-fueled violence, which has no place in America or anywhere else.”
“Driven by a racially motivated violent extremist ideology, the defendant allegedly planned to attack the power grid with a drone and explosives, leaving thousands of Americans and critical infrastructure like hospitals without power,” said FBI Director Christopher Wray. “The FBI’s swift work led to the detection and disruption of the defendant’s plot before he could cause any damage. We are committed to holding accountable anyone who threatens the security of our critical infrastructure or seeks to harm American communities through domestic violent extremism.”
“Dangerous threats to our critical infrastructure threaten every member of this community and will not be tolerated,” said Acting U.S. Attorney Thomas J. Jaworski for the Middle District of Tennessee. “We will always work with our law enforcement partners to identify and stop any and all efforts to wreak this kind of havoc and will not hesitate in prosecuting those involved to the fullest extent of the law.”
“As alleged, the defendant in this case conducted extensive research into explosive devices and potential targets to launch an attack against critical infrastructure,” said Special Agent in Charge Joe Carrico of the FBI Nashville Field Office. “The FBI is committed to doing everything in our ability to detect, disrupt, and deter attacks by domestic violent extremists, and will continue to pursue those who look to commit acts of violence in furtherance of their ideological beliefs.”
Beginning in June 2024, Philippi told a confidential human source (CHS) about his desire to commit a mass shooting at a YMCA facility located in or around Columbia, Tennessee. In July 2024, Philippi told another CHS about the impact of attacking large interstate substations and said that attacking several substations would “shock the system,” causing other substations to malfunction. Philippi researched previous attacks on electric substations and concluded that attacking with firearms would not be sufficient. Philippi, therefore, planned to use a drone with explosives attached to it and to fly the drone into the substation.
In September 2024, Philippi drove with undercover employees (UCEs) of the FBI to an electric substation previously researched and targeted by Philippi, and Philippi conducted reconnaissance of the substation. While driving, Philippi ordered a plastic explosive composition known as C-4 and other explosives from the UCEs. Philippi later purchased black powder to be used in pipe bombs, which Philippi intended to use during the attack on the substation. Philippi texted the CHS: “if you want to do the most damage as an accelerationist, attack high economic, high tax, political zones in every major metropolis.” Referring to the substation, Philippi stated, “Holy sh**. This will go up like a fu**in fourth of July firework.” Philippi talked about operational security, including the need for disguises, the use of leather gloves (because latex and nitrile gloves can transfer fingerprints), wearing shoes that are too big, the need to burn their clothes after the attack, and not bringing smartphones on the night of the attack.
On Nov. 2, 2024, Philippi participated in a Nordic ritual, which included reciting a Nordic prayer and discussing the Norse god Odin. Philippi told the UCEs that “this is where the New Age begins” and that it was “time to do something big” that would be remembered “in the annals of history.” Philippi and the UCEs drove to the operation site. The UCEs moved to their assigned positions as lookouts for Philippi. Law-enforcement agents arrested Philippi. When he was taken into custody, Philippi was at the rear of the vehicle, with the drone powered up, and the explosive device was armed and located next to the drone.
Philippi is charged with attempted use of a weapon of mass destruction and attempted destruction of an energy facility. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Nashville Field Office is investigating the case.
Assistant U.S. Attorney Josh Kurtzman of the Middle District of Tennessee and Trial Attorneys Justin Sher and James Donnelly of the National Security Division’s Counterterrorism Section are prosecuting the case.
A complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Macomb County Doctor and Pharmacist Agree to Pay $700,948 to Settle False Claims Act AllegationsRead the Press Release
DETROIT - United States Attorney Dawn N. Ison announced today that GMAJOS, LLC, Dr. Stephen Swetech, and Yasser Maisari have agreed to pay a total of $700,948.42 to the United States and the State of Michigan to resolve allegations that they violated the False Claims Act. Dr. Swetech has also agreed to rescind his DEA registration and never again prescribe, administer, or dispense controlled substances.
Dr. Swetech operated a medical practice in Clinton Township, Michigan. The practice was located in an office complex owned by his wife’s company, GMAJOS. The complex included separate office spaces for the medical practice, a physical therapy center, and a pharmacy. During all relevant times, Heartland Drugs, which was owned by Yasser Maisari and operated by Med Express Inc., occupied the pharmacy space. GMAJOS also had a lease with a medical laboratory to rent a room within Dr. Swetech’s medical practice.
The settlement announced today resolves two sets of allegations. First, from January 1, 2018, through January 1, 2020, Biolab indirectly paid above fair market value rent to Dr. Swetech for a room rented from GMAJOS in order to induce Dr. Swetech’s referrals to Biolab. These referrals are alleged to have violated the False Claims Act as improper inducements and/or self-referrals. Second, from January 1, 2016, through January 1, 2018, Dr. Swetech prescribed medically unnecessary opioid and attention-deficit/hyperactivity disorder medications, and Yasser Maisari’s Heartland Drugs filled those prescriptions, in violation of the False Claims Act.
“The False Claims Act is an important tool to deter and hold accountable those who submit fraudulent medical claims to the government,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “Healthcare providers whose services are tainted by improper financial relationships or who are charging the government for unnecessary medical services will be vigorously investigated by our office.”
“The payment of kickbacks in exchange for patient referrals can corrupt legitimate medical decision-making and lead to the delivery of fraudulent and unnecessary medical services,” said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Chicago Region. “Working together with our partners, HHS-OIG will continue our efforts to identify and investigate those who seek to unlawfully benefit from such arrangements.”
The civil settlement includes the resolution of claims brought under a qui tam or whistleblower lawsuit under the False Claims Act: United States and the State of Michigan ex rel. Doe v. Med Express Inc., et al., Case No. 17-13162 (E.D. Mich.). Under the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery.
The resolution obtained in this matter was the result of a coordinated effort among the United States Attorney’s Office for the Eastern District of Michigan, the Michigan Attorney General’s Health Care Fraud Division, the U.S. Drug Enforcement Agency, and the U.S. Department of Health and Human Services - Office of the Inspector General. The matter was handled by Assistant United States Attorney John Postulka from the U.S. Attorney’s Office for the Eastern District of Michigan.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Lexington Man Sentenced for Conspiracy to Distribute Methamphetamine and FentanylRead the Press Release
LEXINGTON, Ky. – A Lexington man, Bryan Darnel Ragsdale, 37, was sentenced to 170 months in prison on Friday, by Chief U.S. District Judge Danny Reeves, for conspiracy to distribute 50 grams or more of methamphetamine and 40 grams or more of fentanyl.
According to his plea agreement, between August 6, 2023, and August 30, 2023, Ragsdale agreed with at least one other person, his co-defendant Myrtle Craig, to distribute methamphetamine and fentanyl. Beginning on August 6, 2023, law enforcement arranged for a confidential informant to purchase methamphetamine and fentanyl from Ragsdale, on four different occasions. During the conspiracy, Ragsdale admitted to distributing 49.72 grams of actual methamphetamine, 157.395 grams of a mixture or substance containing methamphetamine, and 41.88 grams of a mixture or substance containing fentanyl. Separate from this conspiracy, Ragsdale also admitted to distributing 78 grams of methamphetamine and 54.6 grams of fentanyl.
Craig was previously sentenced to 74 months for her role in the conspiracy.
Under federal law, Ragsdale must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jim Scott, Special Agent in Charge, DEA, Louisville Field Division; Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Division; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentencing.
The investigation was conducted by DEA, FBI, and KSP. Assistant U.S. Attorney Brittany Baker is prosecuting the case on behalf of the United States.
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